There Still Is Time to Make These Smart Maneuvers – Wall Street Journal – 03/30/13




The Wall Street Journal

Weekend Investor – Wealth Manager – March 30, 2013

There Still Is Time to Make These Smart Maneuvers

By Laura Saunders

Hoping to trim your tax bill for 2012? It isn’t too late to make a few smart moves.

Contribute to a traditional or Roth IRA by April 15. The upper limit on contributions is $5,000, or $6,000 if you are 50 or older. You must have at least as much earned income as your IRA contribution, and income limits apply.

Regular IRA contributions are often tax-deductible, but withdrawals are taxable. Roth account contributions aren’t deductible, but qualified withdrawals are tax-free and have other benefits for retirees.

For example, the withdrawals don’t raise Medicare premiums or taxes on Social Security benefits, nor do they help trigger the new 3.8% Medicare tax on other investment income.


Comments March 30, 2013

You do not need any earned income to maximize your IRA contribution, as long as your spouse has earned income.  Contributions are limited to the lesser of earned income or $5,000 ($5,500 for 2013) for those under 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, who earns $13,000, could each contribute $6,000 to an IRA in 2012 ($6,500 in 2013).


Aaron Skloff, AIF, CFA, MBA

CEO – Skloff Financial Group
Aaron Skloff, Accredited Investment Fiduciary (AIF), Chartered Financial Analyst (CFA), Master of Business Administration (MBA), is the Chief Executive Officer of Skloff Financial Group, a Registered Investment Advisory firm. The firm specializes in financial planning and investment management services for high net worth individuals and benefits for small to middle sized companies.  He can be contacted at or 908-464-3060.


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