Keep these tips in mind when you’re planning a home office:
- Be sure it’s ergonomically correct
- Find the optimal location
- Consider used office furniture
- Incorporate lighting, plants and sound
A Roth IRA allows you to avoid future taxation of your retirement funds by making nondeductible contributions now. Contributions for a given tax year can be made up to and including the tax-filing deadline (not including extensions) for that tax year. This includes contributions made to Discover® Roth IRA CDs, which offer guaranteed rates, flexible terms, and FDIC insurance up to the maximum amount allowed by law.
The following is a partial summary of the rules for Roth IRAs:
Contributions are limited to $6,000 a year for the 2019 and 2020 tax years. Investors aged 50 and older can make an additional $1,000 “catch up” contribution annually.
Income thresholds, such as your modified adjusted gross income (MAGIs), determine whether you are eligible to contribute to a Roth IRA. Your MAGI is your income before any deductions are taken out.
For the 2019 tax year, single taxpayers with MAGI between $122,000 and $137,000, and married couples filing jointly with MAGI between $193,000 and $203,000 are eligible for a partial contribution. Taxpayers earning less than these thresholds may make the full contribution. Those earning more are not eligible to contribute to a Roth IRA.
For the 2020 tax year, single taxpayers with MAGI between $124,000 and $139,000, and married couples filing jointly with MAGI between $196,000 and $206,000 are eligible for a partial contribution. Taxpayers earning less than these thresholds may make the full contribution. Those earning more are not eligible to contribute to a Roth IRA.
Qualified distributions are tax free. To qualify, you typically must have maintained a Roth IRA for five years and be at least 591/2 years old. There are other exceptional conditions where you might be able to make a qualified distribution. Please discuss any special situation with a tax advisor.
Because IRA rules are complex, ask your financial advisor about the IRA strategy that’s best for you. Even if you decide not to convert assets to a Discover Roth IRA, you may determine that it makes sense to make a tax year contribution to a Discover Traditional or Roth IRA instead.
In addition to offering IRA CDs to help you grow your retirement savings, Discover also offers an Online Savings Account to help you with your short-term savings goals and a full range of CDs to help you save for the future. Open an account online or call our 24-hour U.S.-based Customer Service at 1-800-347-7000. For IRA CD-related assistance, call 1-888-204-8966.
The article and information provided herein are not guaranteed by any party and are intended for educational purposes only. Other factors not represented in this article may influence the amounts you are able to contribute or deduct. The information included in the article is based on 2020 IRS limits. The information included is not advice and it may not reflect actual products, services, rates, APYs and/or terms available from Discover Bank®. Nothing contained in this article is an offer, solicitation or guarantee for any product or service that may be available from Discover Bank. You may want to contact a financial advisor or tax professional with respect to information contained in this article and how it relates to you.
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