TOP FOUR YEAR-END IRA REMINDERSIt’s never too late to save for retirement. Individual Retirement Accounts are a great way to put away money for your golden years. If you have an IRA or want to open one, here are some year-end rules and reminders to keep in mind:

Limits on maximum contribution

The maximum contribution to a traditional or Roth IRA is $5,500 ($6,500 for those 50 or older). If you file a joint return, both spouses can contribute to an IRA even if only one of you has taxable compensation. 

Avoid excess contributions

If you exceed your contribution IRA limits, you will be taxed at 6% for the excess amount over the 2015 IRA contribution limit. However, you can withdraw the amount in excess of the limit from your account to avoid the tax.

Take a Required Distribution

If you’re at least age 70½, you must take a required minimum distribution, or RMD, from your traditional IRA. You are not required to take a RMD from your Roth IRA. 

Claim the Saver’s CreditThe formal name of the Saver’s Credit is the Retirement Savings Contributions Credit. You may qualify for this credit if you contribute to an IRA or retirement plan. The Saver’s Credit can increase your refund or reduce the tax you owe.

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