Three Year-End Financial Tips from Green Century

As we approach the end of 2013, Green Century wants to help you get your “investing house” in order. Here are three things to consider:

1. Make your IRA contribution for 2013.

You could wait until April 15^th next year, but why not save for retirement and potentially reduce your current year taxes now – and cross it off your to do list?

It may be the right time to consider starting or making a contribution to a Traditional IRA.

If you are less than 70 ½ years old and meet earned income rules, you can open or contribute to an IRA. Any earnings grow federal income tax-deferred.

Or, consider a Roth IRA. With a Roth IRA, you cannot deduct your current year contributions from your taxable income. However, upon retirement, distributions from your Roth IRA are generally not taxed as ordinary income.

IRA Contribution limits have increased for 2013 to $5,500 for individuals under 50, and $6,500 for those 50 and older. Self-employed individuals with a SEP (Simplified Employee Pension) IRA, meanwhile, can contribute up to $51,000 or 20% of their adjusted earned income for 2013. For information on the tax deduction limits of IRA contributions, click here to view the IRA Disclosure Statement.

To open at IRA with Green Century, you can:

• Open an IRA online, or request forms to do so by mail, by calling 1-800-93-GREEN or clicking here to request forms.
• Roll over an existing IRA by filling out an IRA Transfer form along with your Green Century IRA Registration Form and mailing it in to the address indicated on the form.

2. Remember your RMDs

If you are in your 70’s – or if you want to remind someone who is – don’t forget the IRS rules about required minimum distributions, or RMDs.

After age 70 ½, retirement savers are required by the IRS to withdraw a minimum amount each year from tax-deferred retirement accounts, including 401(k)s and Traditional IRAs (but not Roth IRAs). If you don’t take your RMD by December 31, you may incur a significant IRS penalty – 50% of the amount not taken. RMD’s can be taken from any one or a combination of your IRAs.

There are a few exceptions:

• Investors who reached age 70 ½ in a given year may have until April 1 of the following year to take their first RMD payment.
• Investors who are 70 ½ or older who are still employed have the option to delay RMD’s from an employer retirement plan.

3. Go paperless.

Reduce your clutter and conserve resources by getting your Green Century statements delivered to you online. To make this simple switch, access your account here.

After logging in, select “Account Detail” from the menu on the left. You can change your mailing preferences from this page.

If you don’t yet have online access, click here to set it up.