Last-minute tax tips

Contribute to a regular IRA

Reduce your 2008 taxes by contributing to a regular IRA. The IRA contribution limits rose for 2008. If a taxpayer’s employer does not have a retirement plan, she or he may be eligible to take an IRA deduction on her or his 2008 return. A taxpayer may contribute up to $5,000 through April 15 (or $6,000 if they are over age 50) and still have it count as a deduction on their 2008 taxes. Taxpayers getting a refund may even direct the IRS to use it as part of their 2008 contribution to an IRA account.

Many taxpayers qualify for a Roth IRA even if their employer has a retirement plan. There is no immediate deduction for contributions to a Roth IRA, but the earnings are tax-free when they are withdrawn.

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Contribute to a regular IRA Reduce your 2008 taxes by contributing to a regular IRA. The IRA contribution limits rose for 2008. If a taxpayer’s employer does not have a retirement plan, she or he may be eligible to take an IRA deduction on her or his 2008 return. A taxpayer may contribute up to $5,000 through April 15 (or $6,000 if they are over age 50) and still have it count as a deduction on their 2008 taxes. Taxpayers getting a refund may even direct the IRS to use it as part of their 2008 contribution to an IRA account. Many taxpayers qualify for a Roth IRA even if their employer has a retirement plan. There is no immediate deduction for contributions to a Roth IRA, but the earnings are tax-free when they are withdrawn.