Make the most of your tax filing

 

The April 17th tax filing deadline is fast approaching and the IRS expects either a tax return or an extension filed by this date. Regardless of what you did or are planning to do, there are still a few things that you can do to make the most of your 2017 filing. Everyone’s situation is unique so it's very important you consult your Tax Advisor about these strategies.

 

You may be eligible to make an IRA or Roth IRA contribution for 2017. The IRA may be tax-deductible if you don't have a retirement plan at work. The Roth IRA isn't deductible but grows and distributes tax-free during retirement. The most that you can contribute is $5,500, plus $1,000 ‘catch-up’ for people 50+ between the two strategies.

 

There are Income limits which prevent people from making direct Roth contributions. Income phase-out starts at $118,000-$133,000 for single filers, and $186,000-$196,000 for married filers. If your income is above these amounts then you can make a non-deductible IRA contribution followed by a Roth conversion. This is called funding a backdoor Roth and is an advanced strategy to get more money into the tax-free bucket.

 

If your health insurance plan offers a Health Savings Account (HSA), you can still contribute for 2017. The most you can put in, between yourself and your employer, is $3,400 for an individual and $6,750 for a family, plus $1,000 ‘catch-up’ for people 55+. Contributions are tax-deductible going in and tax-free going out if used for medical expenses. After the age of 65, distributions can be used on things more than just medical, however, it would be subject to ordinary income taxes.

 

If you're a contractor or small business owner you can still open a SEP IRA for 2017 and fund up to 25% of your eligible income up to $54,000. The deadline is when you file, or if you extend, October 15th.

 

If you’re a US taxpayer living abroad, your filing deadline is June 15th, plus extension, however, taxes are due on April 17th. If you've used up your foreign earned income exclusion, you may be eligible to make an IRA/Roth contribution.

 

At Eureka Wealth Management, I work with my clients’ Tax Advisors to help carry out the best tax strategy.  Laws change all the time and it's important to have your team up to speed on the latest rules to make the most of your finances. Contact me for a free, initial consultation online at eurekawealthmanagement.com or call (760) 537-0791.

 

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125 E. Tahquitz Canyon Way Ste. #203

Palm Springs, CA. 92262

info@eurekawealthmanagement.com

(760) 537-0791

©2017 BY EUREKA WEALTH MANAGEMENT.

Eureka Wealth Management is a registered investment adviser in the State of California. The adviser may not transact business in states where it is not appropriately registered, excluded or exempted from registration. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment advisory services. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.