IRA and Wisconsin 529 College Savings Plan

Individual Retirement Arrangement

It's not too late to claim a 2015 tax deduction if you contribute to an IRA by your tax due date for 2016, which for most people is April 18, 2016.

Are you wondering if you qualify? The below should help:

• Age Rules. You must be under age 70½ at the end of the tax year in order to contribute to a traditional IRA. There is no age limit to contribute to a Roth IRA.
• Compensation Rules. You must have taxable compensation to contribute to an IRA.
• Contribution Limits. The maximum you can contribute to your IRA for 2015 if you are under 50 years old is $5,500, 50 years old or older $6,500. Your age is determined by how old you are on 12/31 of the tax year. If you try to overachieve and contribute more then the law will allow you will be penalized at a high percentage.
• Taxability Rules. You shouldn't have to pay taxes on the funds in your traditional IRA until you start taking distributions from it. Qualified distributions from a Roth IRA are tax-free however the contributions can't be used to reduce your tax liability.
• Saver’s Credit. You can enjoy a 50%, 20%, or 10% or your IRA contribution up to $4,000 married filing joint.

Wisconsin 529 College Savings Plan

Good news for the State of Wisconsin Residents! Wisconsin taxpaying residents have the power to lower their own State tax liabilities dollar for dollar up to $3,100 ( per child) when you invest in a qualified Wisconsin 529 College Savings Plan. Make your contributions by your tax due date and you can tax advantage of the Wisconsin State Education Credit for 2015.

Benefits:

• Tax break dollar for dollar
• Invest in the future of a loved one
• Opportunity to save money

Who qualifies?

• Parents, grandparents, other relatives, trusts, guardians--anyone can open an account [as long as you are 18 or older].
• You can also open an account for yourself
• Any adult can contribute to an account.