Here is a tax tip to discuss with your tax preparer when reviewing your 2011 income tax return. If you and your wife are still both working, and if you received a bonus payment in 2011, you can still save some of the bonus money from taxes. Each of you can contribute up to $5,000 into a 2011 IRA using lease bonus money if you also have sufficient earned income. Individuals continuing to work past age 65 can make a “catch up” IRA contribution of $6,000. If you are able to do the IRA funding, you not only save taxes, you get to keep the contribution money for future needs. Check this out with your local Northwest Financial Advisor soon as the IRA funding window for 2011 expires April 15, 2012.
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