Retirement plans come in many different flavors with many different rules. Maybe there are fewer than the flavors of coffee at Starbucks, but there are still quite a few flavors of retirement plans. The end of the year is a good time to review your retirement plan decisions.
A few plans need to be funded before the end of the year; a few plans just need to be set up before the end of the year. IRAs and 401(k) plans are the two common retirement plans and their rules are different. The 401(k) plans need to be funded by the end of each calendar year through the payroll. IRA contributions can be made through the due date of the return and still be tax deductible – a nice benefit. You can wait until spring and prepare your return Read more