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Page 8 POST-GAZETTE, APRIL 26, 2013 IRA CONTRIBUTION LIMITS RISE FOR 2015 Save a Little More for Retirement Time to boost your IRA balance. In 2013, you can contribute up to $5,500 to your Roth or traditional IRA. If you will be 50 or older by the end of 2013, your contribution limit is actually $6,500 this year thanks to the IRS's "catch-up  provision. The new limits represent a $500 increase from 2012 levels.  January is an ideal time to max out your annual IRA contribution. If you are in the habit of making a single annual contribu- tion to your IRA rather than monthly or quar- terly contributions, try to make the maxi- mum contribution as early as you can in a year. More of your money should have an opportunity for tax-deferred growth, not less. While you can delay making your 2013 IRA contribution until April 15, 2014, there is no advantage in waiting -- you will tunt the compounding potential of those assets, and time is your friend here. 2 Do you own multiple IRAs? If you do, re- member that your total IRA contributions for 2013 cannot exceed the relevant $5,500/ $6,500 contribution limit. 3 Your IRA contribution may be tax-deduct- ible. Are you a single filer or a head of house- hold? If you contribute to both a workplace retirement plan and a traditional IRA in 2013, you will be able to deduct the full amount of your IRA contribution if your modified adjusted gross income is $59,000 or less. A partial deduction is available to such tilers with MAGI between $59,001- 69,000. 4 The 2013 phase-outs are higher for mar- ried couples filing jointly. If the spouse mak- ing the IRA contribution also participates in a workplace retirement plan, the tradi- tional IRA contribution is fully deductible if the couple's MAGI is 695,000 or less. A par- tial deduction is available if the couple's MAGI is between $95,001-115,000. 4 If the spouse making a 2013 IRA contri- bution doesn't participate in a workplace retirement plan but the other spouse does, the IRA contribution may be wholly deducted if the couple's MAGI is $178,000 or less. A partial deduction can be had if the couple's MAGI is between $178,001-188,000. (The for- mula for calculating reduced IRA contribu- tion amounts is found IRS Publication 590.) 5 You cannot contribute to a traditional IRA in the year in which you turn 70V2 or in subsequent years. You can contribute to a Roth IRA at any age, assuming your income permits it. 1 What are the income caps ol Roth IRA contributions this year? Singb fliers and heads of household can make a full Roth IRA contribution for 2013 if their MAGI is less than $112,000; the phase-out range is from $112,000-127,000. For joint tilers, the MAGI phase-out occurs at $178,000-188,000 in 2013; couples with MAGI of less than $178,000 can make a full contribution. (To figure reduced contribution amounts, see Publication 590.) Those who can't contrib- ute to a Roth IRA due to income limits do have the option of converting a traditional IRA to a Roth. 7 As a reminder, Roth IRA contributions aren't tax-deductible -- that is the price you pay today for the possibility of tax-free IRA withdrawals tomorrow. 8 Can you put money in an IRA even if you don't work? There is a provision for that. Generally speaking, you need to have taxable earned income to make a Roth or traditional IRA contribution. The IRS defines taxable earned income as ... Wages, salaries and tips. Union strike benefits. Long-term disability benefits received before minimum retirement age. Net earnings resulting from self- employment. Also, you can't put more in your IRA(s) than you earn in a given year. (For example, if you are 25 and your taxable earned in- come for 2013 amounts to $2,592, your IRA contributions for this year can't exceed $2,592.) 9 However, a spousal IRA can be created to let a working spouse contribute to a non- working spouse's retirement savings. That working spouse can make up to the maxi- mum IRA contribution on behalf of the stay- at-home spouse (which does not affect the working spouse's ability to contribute to his or her own IRA). Married couples who file jointly can do this. The IRS rule is that you can contrib- ute the maximum into this IRA for each spouse as long as the working spouse has income equal to both contributions. So if both spouses will be older than 50 at the end of 2013, the working spouse would have to earn taxable income of $13,000 or more to make two maximum IRA contribu- tions ($12,000 if only one spouse is age 50 or older at the end of 2013, $11,000 if both spouses will be younger than 50 at the end of the year). 8.9 So, to sum up ... make your 2013 IRA con- tribution as soon as you can, the larger the better. Joe Vita may be reached at 781-33-6533 ext.2616 or joe.vita@trilog!ifs.com, www.trilogilfs.com The opinions voiced in this a'ticle are for general information only. They are not in- tended to provide specific advic or recommendations for any individual. Securities and advisory services offered through National Planning Corporation (NPC). Member FINRA, SIPC. A Registered Investment Adviser. Trilogy Financial Services and NPC are separate and unrelatecl entitles. This material was prepared by MarketingLibrary.Net Inc., and does not necessarily repre- sent the views of the presenting party, nor their affiliates. MarketingLibrary.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. All information is believed to be from. reliable sources; however we make no representa- tion as to its completeness or accuracy. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is not a solicitation or a recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular invest- ment. Citations. - WWW.irsgv/Rtirement-Pans/Pan-Participant-Empyee/Retirement-Tpics-IRA-Cntributin-Limits [ii/28/12] 2 _ finance.zacks.com/can-ira-contribution-carried-forward-5388.html [I/9/12] 3 _ hepdesk.blogs.mney.cnn.cm/22/6/6/can-i-cntribute-more-than-5-t-Inultple-iras/ [6/6/12] - www.irs.gov/Retirement-Plans/2013-1RA- Deduction-Limits-Effect -of-Modified-AGl-on-Deduction-if-You-Are-Covered-by-a_ Retirement-Plan-at-Work [I 1/26/12] 5 _ www.irs.gov/Retirement-Pans/2l3-IRA-Deductin-Limits-Eect-f-Mdified-AGI-n-Deductin-f-You-Are-NOT-overed- by-a-Retirement-Plan-at-Work [11/26/12] 6 _ www.irs.gov/publications/p590/ch01.html#en_US 2011 publink10002304123 12011] 7 _ www.irs.gov/Retirement-Plans/Amunt-of-Roth-IRA-Cntributions-That-Yu-Can-Make-For-2l3 [11/27/12] 8 . www.irs.gov/taxtopics/tc309.html [ 12/17/12] 9 _ www.creatrs.cm/lifestylefeatures/business-and-finance/mney-and-yu/can-yu-cntribute-t-an-ira-if-you-dn-t-have- a-job.html [201 i] i: )00OF C00TURE JUN 3 [ Providence, "Pinocchio, Storia di un Burattino." Performed by Massimiliano Finazzer Flory. PROVIDENCE JUN 11 [ Berklee College of Music, Boston. Concert by Enrico Rava and his Quintet. BOSTON JULY 14 [ Boston. "La Notre della Taranta." Part of the "Outside the Box" Festival. BOSTON JUL 27 [ Tanglewood, Lenox "Requiem" by Giuseppe Verdi. Performed by The Boston Symphony Orchestra, Director Daniele Gatti. LENOX NOV 13-17 [ The Paramount, Boston. Compagnia Marionette Carlo Colla e Figli Presents "The Sleeping Beauty." BOSTON JUNE 7 [ Boston Public Library. italianissimol A special night of Italian culture, music, fashion and food to raise funds for the creation of the Italian Cultural Center of Boston. BOSTON MAY 9 [ Dante Alighieri Society of Massachusetts. "On the Road with Dante Alighieri." CAMBRIDGE OCT 16 ] Center for European Studies, Harvard University. "Salvemini Colloquium" on Italian history and culture with Prof. Massimo Salvadori. CAMBRIDGE OCT 2013 I Emmanuel College, Boston. "The Meaning of Machiavelli's Prince." Lecture by Prof. Maurizo Viroli (Princeton). BOSTON NOV 23 I Brown University, Providence. International Prize: "Boccaccio Afterlife." In cooperation with the American Boccaccio Association (ABA) and the Town of Certaldo on the occasion of the 700 'h anniversary of Giovanni Boccaccio. PROVIDENCE THROUGH JUL 14 [ RISD Museum, Providence. Exhibition "The Festive City." PROVIDENCE THROUGH MAY 1 [ Museum of Fine Arts, Boston. "Capitoline Brutus." Loan from the Capitoline Museums in Rome. BOSTON THROUGH JUN 30 [ Museum of Fine Arts, Boston. Exhibition "Michelangelo: Sacred and Profane Master Drawings from the Casa Buonarroti." BOSTON MAY 20 - JUN 28 [ City Hall, Boston. "Looking for Hemingway." Exhibition by Franco Azzinari. BOSTON FALL 2013 [ Providence. De Chirico Exhibition. PROVIDENCE FALL 2013 .] Harvard University, Cambridge. International I Conference on "Galileo and Sunspots." Organized by Museo Galileo, I Firenze Istimto Nazionale di Astrofisica, Harvard University. In. cooperation with NASA. CMBRIDGE OCT 2013 ] Boston. PIB Seminar Series: "Italian and American Policies on Biomedical Resear'ch." BOSTON' I MAY 7-8 [ City Hall, Boston. Exhibition: Barrique "The Third I | Life for Wood." BOSTON | II JUN [ MIT and Politecnico of Milan. Joint six-week course for Italian II II and U.S. students at the Design Department of the Politecnico of II Milan. MILAN JUN 16-22 1 Boston PIB Sailing Championship, in partnership with Scuola Vela Mascalzone Latino and three sailing centers in Boston BOSTON SEP - OCT [ Carpenter Center for the Visual Arts. Harvard University, Cambridge. "New Italian Cinema," in cooperation with Cinecitta' and Harvard Film Archive. CAMBRIDGE JOIN US FOR A INTERFAITH VIGIL FOR MARATHON VICTIMS Dear North End Community, Please join us this Thursday, April 25  at 7:00 pm for an Interfaith Vigil at the Old North Church, 193 Salem Street, North End, Boston for the victims of the Boston Marathon Tragedy and in gratitude for the brave men and women who responded. We will also be praying for Roseann 8doia who lives in the North End and was severely injured in the incident. We will also be collecting donations for her recovery. Come open your hearts in song, prayer, and silence. WWW.B( )STONPOSTGAZETTE.COM