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In 2008, the maximum contribution limit has increased to $5000 and if you are over 50, you can contribute up to $6000. If you would like to open or add to a Coverdell Education IRA, this year’s maximum contribution is $2000 per child. Also new in 2008, all IRAs are now federally insured up to at least $250,000 by the National Credit Union Administration (NCUA).
One simple way to ensure that you adequately fund your IRA in 2008 is to instruct the IRS to directly deposit all or part of your 2007 tax refund into your Charleston Area IRA account. Direct deposit is fast, safe and convenient.
To arrange for direct deposit on your 2007 tax refund, enter our routing number (253278414), where instructed on your tax return form.
Here are IRAs options available to help provide you with a comfortable and enjoyable retirement. Third Party Link Disclosure
What are the different tax forms you may receive?
Below we have provided some basic information to help you understand what each one is.
1099-INT This form covers interest income and backup withholding. They are provided to any person or business who received $10 or more in interest income for the tax year.
1099-Q This form provides the taxable amount distributed in regards to Coverdell Education Savings Accounts.
1099-R This form shows the distributions from an IRA (Traditional or Roth) which were not directly transferred to another IRA of the same type.
If you have a Roth and Traditional account and any amount was distributed from these accounts, you will receive a 1099-R for the Roth account and another 1099-R for the Traditional account.
5498
This form shows your contributions to IRA accounts. They are provided to anyone with a contribution or rollover to a Roth or Traditional IRA for the subsequent tax year.
5498-ESA This form shows your contributions to Coverdell Education Savings Accounts. They are provided to anyone with a contribution or rollover to a Coverdell (ESA) for the subsequent tax year.
1098 This form is your mortgage loan interest statement. It includes all mortgage loan interest paid for the tax year. Mortgage interest is not aggregated to include all 1st and 2nd mortgages and Home Equity Lines of Credit (HELOCs) so you may receive multiple 1098 statements.
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