Consider an IRA to Cut Taxes
— -- It's not too late to start last year's IRA.
"Even though the year is over, if you haven't put the maximum amount into an IRA … you still have time to do that," according to Don Roberts of the Internal Revenue Service.
The deadline for 2003 Individual Retirement Account contributions is the same as the tax filing deadline, April 15. The maximum you can add to these fund depends on your age.
"That amount is $3,000 for an IRA, with an additional $500 catch-up contribution for those who are age 50 or over." Singles making less than $50,000 a year, or married couples with an income below $70,000 might lower their 2003 tax bill by contributiong to a traditional IRA.
Another investment option is to shift some of your savings or investments into a Roth IRA. That money — and what it earns — will be tax free when you take it out upon retirement. While there are no tax savings through a Roth fund now, those savings are substantial later in life when you retire.
Click here for interactive tax explainers and calculators
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