The allowable contribution to a Traditional IRA for 2016 was $5,500 ($6,500 if over 50) and it might be possible to take a tax deduction equal to your contribution amount.
You might say, “But it’s too late, that was last year.” To the contrary, the IRS allows you to make a contribution to IRAs for the previous tax year up until the tax filing deadline (April 18 this year). So if you haven’t already, it’s still possible to make an IRA contribution for 2016 and possibly qualify for a tax deduction. See IRS Publication 590.
A recent CNBC article “The Top Mistakes to Avoid on your Tax Return”
mentions IRA contributions among a few other things to be aware of before filing your 2016 tax return. Health Savings Accounts (HSAs) have increased in popularity because of the potential tax advantages of saving for and paying of qualified medical expenses (HSAs can be self-directed as well), and the article touches on the importance of tracking contributions to the account. It’s possible to qualify for a tax deduction for your HSA contributions.
In addition to the potential tax deductions for contributions to IRAs and HSAs, it’s possible to self-direct your account and invest in a wide-range of assets (such as real estate and promissory notes). Click the orange button below if you are interested in learning more about self-directed IRAs at Equity Trust.