Smart Money with Keith Springer Saturdays at 1PM and Sundays at 6AM on NewsRadio KFBK 93.1 FM and 1530 AM

Essential Tax Time Tax Tips

Keith_Springer_7_easy_tips_on_how_to_save_money_on_taxesDo you feel that hand in your pocket? No it’s not your kids, they’re still asleep. (Although in my case, Josh is at school in Tucson, but I still feel his hand in there!). You guessed it, It’s Uncle Sam, and he’s looking for more, with a vengeance! With taxes rising and deductions quietly being eliminated, it’s up to us to take advantage of the few tax law benefits we’re still allowed.

To help you with the important information you’ll need for your taxes this year, Here is my updated Key Financial Data and Tax Chart for 2014. This shows IRA and retirement plan contribution and deduction limits, the new tax rates, Social Security and Medicare premiums, and a whole lot more! Save this file, it will prove indispensable.

I have illustrated some of the key retirement plan contribution and eligibility requirements below:

To make IRA and retirement plan contributions, Individuals must meet specific requirements to be eligible.

  • Eligible income required. Contributions must be made from eligible compensation, such as W-2 wages/salary, commissions, self-employment income, nontaxable combat pay, and other amounts earned from working.
  • Special rule for spouses. If an individual does not earn income from working outside the home but is married to someone who does, that person’s IRA contribution can be based on the working spouse’s income. In such cases, the couple must file a joint federal tax return.
  • Contribution limits – See Key Financial Data and Tax Chart for 2014
  • Age limits – Contributions for a traditional IRA must stop the year the individual reaches age 70½ and after. This limitation does not apply to Roth IRA contributions.
  • Roth limits – Contributions cannot be made to Roth IRAs if the individual’s modified adjusted gross income (MAGI) exceeds a certain amount. Roth IRA contribution limits are phased out if the MAGI falls within a certain range. See below:


Deposit deadline. Most retirement plan contributions can be made by the owner’s tax filing due date, which is April 15, or later if you file an extension.

Avoid penalties!

  • 10% early distribution penalty on distributions that occur before the account owner reaches age 59½
  • 6% excise tax on excess contributions that are not corrected by the applicable deadline
  • 50% excess accumulation penalty on required minimum distributions (RMDs) that are not withdrawn by the deadline


Be the expert or hire one!
You basically have to be a retirement expert to understand this mess we call the tax code and to make sure you do not run out of money in retirement. We get new clients all the time that have been with their advisor’s for over 20 years, but realize they need a qualified retirement advisor that takes a comprehensive holistic approach to your finances as you enter those golden years. We don’t take unnecessary chances because we know you can’t replace this money.

That’s why it’s so important for retirees and those planning for retirement to graduate to a qualified retirement advisor who can help put a plan in place that incorporates not just your investments but everything: Social Security timing and optimization, Elder care planning so you don’t give away all your money at the end of life, setting up a retirement income stream that cannot outlive as well as bulletproofing your portfolio….and it all starts with a free Retirement Income Analysis…. or just give me us call for a no-cost no-obligation consultation today at (916) 925-8900.

Springer Financial Advisors ("Advisor") is a federally registered investment adviser located in Sacramento, California. Advisor and its representatives are in compliance with the current filing requirements imposed upon registered investment advisers by the Securities and Exchange Commission and the State of California. Advisor's web site and its emails of general distribution are limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of Advisor's web site on the Internet or dissemination of informational emails should not be construed by any consumer and/or prospective client as Advisor's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. A copy of Advisor's current written disclosure statement discussing Advisor's business operations, services, and fees is available from Advisor upon written request. You may also obtain publicly available information about Advisor through the SEC website as follows: Advisor does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Advisor's web site or incorporated in an email, and takes no responsibility therefore. All such information is believed to be reliable and authoritative but does not constitute sufficient information to be the sole basis for sound investment decisions and all users thereof should be guided accordingly. Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended or undertaken by Advisor) made reference to directly or indirectly by Advisor in its web site, email, or indirectly via a link to an unaffiliated third party web site, will be profitable or equal the corresponding indicated performance level(s). Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client or prospective client's investment portfolio. Certain portions of Advisor's web site (i.e. articles, commentaries, etc.) may contain a discussion of, and/or provide access to, Advisor's (and those of other investment and non-investment professionals) positions and/or recommendations as of a specific prior date. Due to various factors, including changing market conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from Advisor, or from any other investment professional. The information is of a general nature and should not be applied indiscriminately to particular situations wherein it may not be completely applicable. Advisor is neither an attorney nor an accountant, and no portion of the content should be interpreted as legal, accounting or tax advice.