Obamacare Subsidies

Green Financial Services co-owner Mario Valverde was recently interviewed by NPR about
Californians having to pay back Obamacare subsidies.

Do you have to pay back Obamacare subsidies? Listen to our recent NPR Interview.

http://www.scpr.org/news/2015/04/02/50732/some-californians-have-to-pay-back-obamacare-subsi/

2014 IRA Contribution is Still Possible

There is still time to make your IRA contribution for the 2014 tax year. You have until April 15 to contribute.  Below are tax tips from the IRS about saving for retirement using an IRA.

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. This includes income from wages and salaries and net self-employment income. It also includes tips, commissions, bonuses and alimony. If you are married and file a joint tax return, only one spouse needs to have compensation in most cases.

When to contribute

You can contribute to an IRA at any time during the year. That means most people must contribute by April 15, 2015. If you contribute between Jan. 1 and April 15, make sure your plan sponsor applies it to the year you choose (2014).

Contribution limits

 If you contribute between Jan. 1 and April 15, make sure your plan sponsor applies it to the year you choose (2014). The full amount you can contribute is $5,500 (or $6,500 if you’re age 50 or older) or your taxable compensation for the year.

Taxability rules

You normally won’t pay income tax on funds in your traditional IRA until you start taking distributions from it. Qualified distributions from a Roth IRA are tax-free.

Deductibility rules

You may be able to deduct some or all of your contributions to your traditional IRA. You may not deduct contributions to a Roth IRA.

Saver’s Credit

If you contribute to an IRA you may also qualify for the Saver’s Credit. The credit can reduce your taxes up to $2,000 if you file a joint return. Use Form 8880, Credit for Qualified Retirement Savings Contributions, to claim the credit.

Contact GFS if you have questions about your IRA contributions.