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The government recognizes that retirement costs are increasing and Social Security and Medicaid are not addressing individual needs whatsoever. Smart taxpayers utilize the government’s gift of contributing to an IRA to accomplish many financial and estate planning goals. This is one gift horse you want to take advantage of by establishing an IRA before the federal tax deadline of April 15! Do so and you will gain multiple estate, financial, retirement and tax planning benefits.


Yes! Whether you earn over $1 million per year or absolutely no income you can still qualify for an IRA.


However, in order to qualify for an IRA as a non-earner, your spouse must generate earned income (note:alimony is an exception). Earned income includes salary, self-employed incomeand sales commissions. This calculation does not include interest, dividends,pension income or social security income.


Caveat: Contributions are limited to the lesser of earned income or $5,000 ($5,500 for 2013) for thoseunder the age of 50 or $6,000 ($6,500 for 2013) for those aged 50 and over. For example, a 65-year-old retired husband and 63-year-old semi-retired wife, whoearns $12,000, could each contribute $6,000 to an IRA in 2012.


So don’t let this opportunity pass you by: establish and contribute to an IRA for the tax year 2012 up until the time you file your 2012 taxes (with a deadline of April 15, 2013). If you have a Keogh or Simplified Employee Pension (SEP) IRA you can receive a filing extension, extending your contribution deadline to October15, 2013.

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