Did you know you can still save on taxes for 2016 by contributing to your IRA or Self-Directed IRA? This is especially true if you are on the cusp of a higher tax bracket. For example, if you are married and filing jointly, the 15% tax bracket is cut off at $75,300. If your total income is $78,000 and you have an IRA account, you can contribute $2,700 to it and avoid the higher 25% tax bracket.
The maximum contribution you can make to an IRA for 2016 is $5,500 (or $6,500) if you are age fifty or older. You have until April 17, 2017 to contribute to your 2016 IRA. Don’t have an IRA yet? You cannot take advantage for last year’s taxes unless you already have a traditional IRA plan. If you don’t have one, now is the time to open up one and start saving on this year’s taxes. (2017 IRA Limits remain the same as last year.) Not to mention all the advantages of having an IRA, such as tax-free investing, tax-deductions and alternate investment strategies with a Self-Directed IRA.