If you have made or plan to make IRA contributions, here are a few important things to remember:
Contribution Limit: up to $5,500 ($6,500 if age 50 or older).
Excess Contributions: be careful, there is a 6% penalty for excess IRA contributions that are assessed each year the excess remains in the IRA!
Deadline: the deadline for making 2016 contributions is April 18, 2017.
Age Limit: you can’t make contributions to a traditional IRA in the year you turn 70 ½ and later.
Deductibility: this varies by individual situation, consult with your personal retirement distribution expert if you have questions or need guidance.
Form 8606: if you make any non-deductible contributions to a traditional IRA, make sure you file IRS Form 8606 to help ensure you don’t get double taxed! Also, keep copies of any 8606 forms with your will and/or trust so your heirs will be able to determine your IRA basis.