IRA Contributions and Distributions: Good Things to Know

posted 1/24/2011 in General

With tax season upon us and New Years resolutions still fresh in our minds, it's a good time to think about our IRA accounts. Here are some things that may be important for your 2010/2011 tax and retirement savings planning:

Max out your contributions! Traditional and Roth IRA contribution limits are the same for 2011 as they were for 2010:

  • Those under age 50 can contribute up to $5,000 in 2011
  • Those age 50 and over can contribute up to $6,000 in 2011

One of the provisions of the new tax bill is the extension of the Qualified Charitable Distributions. Here are some of the guidelines for Qualified Charitable Distributions:

  • Distributions from Traditional IRAs
  • Must be age 70 1/2
  • Distributions up to $100,000 can be made tax free to a charitable donation:
    • $100,000 for 2010
    • $100,000 for 2011
  • If done before February 1, 2011, it can be applied to the 2010 tax year.
  • Checks must be written directly to the charity
  • Required minimum distributions for 2011 can be sent to the charity

Contact your local IRA specialist for more information. LSB's Personal Financial Advisors can help with your retirement questions.

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This information is being provided by Lincoln Savings Bank (LSB) / LSB Financial, an Iowa-based institution devoted to providing complete financial services since 1902. http://www.mylsb.com
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