The transition period between winter and spring can be one of our least favorites in the Pacific Northwest – the sky appears constantly gray, the ground seems perpetually wet, and for many of us there’s a tax bill looming. It’s not all doom and gloom. Admittedly, we are fortunate to get hints of a sunny spring-like day or two, our coffee options are virtually limitless, and some of us are actually expecting a tax refund in 2015.
Individual retirement account (IRA) and taxes
For those of us less fortunate, there may be ways to decrease your 2014 tax burden before filing on April 15. Consider contributing to your IRA or if you don’t have one, now is the perfect time to start an IRA. An Individual Retirement Account can be set up at most financial institutions (including OnPoint). IRA contributions can be invested in a number of account types including mutual funds, stocks, bonds, money market accounts, CDs and savings accounts.
The IRS allows you to apply contributions made before April 15 this year to your 2014 tax return. You can make a total contribution of up to $5,500 this year ($6,500 if you’re over 50)1. Making an IRA contribution now toward your 2014 tax return could reduce your tax burden, an encouraging advantage to saving for your retirement. (Be sure to consult your tax advisor for specific details related to your eligibility for tax deductions.)
The Oregon College Savings Plan is another tax deduction opportunity for parents who would like to start or build upon their child’s education savings. This plan allows for contributions up to April 15 in order to qualify for a deduction on your 2014 tax return. Please visit oregoncollegesavings.com2 for more details.
Brock Madsen, Marketing Specialist | Marketing Services