10/30/2014

Currently

58°F

Cloudy
Humidity: 70%
Pressure: 29.93 in

Consumer

You may have one more tax deduction for 2013

You may have one more tax deduction for 2013
Show Caption

There's still may be one last money-saving move you can make to reduce your 2013 tax bill. You can make a tax deductible contribution to your 2013 IRA.

"You still have the ability to stuff some money into last year's IRA contribution and still preserve the option to do so for 2014 in the months ahead," said Greg McBride, senior financial analyst at Bankrate.com.

You can sock away up to $5,500 if you are under age 50 and up to $6,500 for those 50 and older.

"If you're investing in a traditional IRA, by deducting that contribution now, you're reducing your taxable income for 2013 and at the same time saving for retirement on a tax-advantaged basis," McBride said. "Any returns you get on that investment over the years to come are not taxable now. You only pay taxes when you withdraw that money in retirement."

And if you already maxed-out your 2013 contribution, start working on 2014.

More info: IRA Contribution Limits for 2013 and 2014

Share:
Sometimes, it pays to pay more