IRA Funding  

The IRS has announced that taxpayers have until April 17, 2012 to file their tax returns.

As April 17th quickly approaches, it is important to note that this is not only the last day to file your taxes, it also marks the last day to contribute to your IRA for 2011.

Maximum Annual Contribution

• Lesser of earned income or $5,000 ($6,000 if you are age 50 or older).
• A contribution for a nonworking spouse can also be made. Click here for the IRS Spousal IRA Limits.

 Roth IRA Contribution Eligibility

• Up to the full contribution limit if your Modified AGI is less than $107,000 (single) or $169,000 (married/filing jointly).
• Phaseout limits apply if Modified AGI is $107,000-$121,999 (single) or $169,000-$178,999 (married/filing jointly).
• You cannot contribute to a Roth IRA if your Modified AGI is $122,000 (single) or $179,000 (married/filing jointly) or more.

Please contact us as soon as possible if you would like to contribute to your IRA for 2011. 

Tax Form Reminders 

• Tax Forms 1099 and 1099R will be delivered by late-February.  
• Tax Form K-1 for limited partnerships will be delivered by mid-March.

 This should give you ample time to gather investment related tax documents and deliver them to your tax preparer prior to the April 17th deadline.

As a caution, as in past years, there will undoubtedly be "corrected 1099's" constructed after the originals are issued.  These corrections are made internally with each specific mutual fund company, who will then inform investment firms (like LPL Financial) of any applicable changes made to 1099's.  Unfortunately, this process will more than likely continue in the foreseeable future as tax reporting deadlines for mutual fund companies are not aligned with tax reporting deadlines for investors.  Hence, we recommend completing your tax returns the first week of April to allow any corrected 1099's to be delivered.

As always, please contact us if you have any questions.

Lifetime Financial Advisors, Inc. does not offer tax advice. Please consult a qualified tax advisor.

227 N. El Camino Real Ste. 201 | Encinitas, CA  92024

760.943.0430 phone | 760.943.0950 fax
 

www.lfa-inc.com

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