Q: What is the last day one can contribute to their retirement account for purposes of a tax deduction?
A: For retirement account contributions, April 15 of the following year is the last day one can contribute an amount that can be deductible for the previous tax year.
Q: I have heard that owners of traditional IRAs can convert their traditional IRAs to Roth IRAs this year, regardless of income. Is this true?
A: Yes, this year, and this year only, taxpayers earning any amount of money can convert their traditional IRAs to Roth IRAs. There are various advantages to doing so. The advantages include providing tax free income during retirement, providing a tax free legacy to your heirs and the ability to remove the money contributed penalty-free.
Q: I want to file my return electronically. Do electronically filed returns get refunds faster?
A: Generally, returns filed electronically receive their returns within 2 weeks. The traditional paper method filing usually nets a return in 6 weeks.
By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors