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IRA – Still Part of a Smart Investment Strategy.

If you owe taxes this year, an IRA is still the best way to defer taxes.

Your taxes may have increased for a number of reasons: capital gains, a two income family, a raise, sales commissions or a number of other reasons that put you in a high income bracket.

A good strategy is still to use a traditional IRA to defer part of your taxes. If you’re over 50, you can defer up to $6500 into a traditional IRA and an additional $6500 for your spouse. That’s a total of $13,000 off your taxable income for the year. You can defer $13,000 this year until later, and pay taxes on it when you’re making a lot less money. (Hmmm…I hope that never happens).

A Roth IRA is a great way to earn interest without increasing your tax bill. Either way, it’s worth giving some consideration. See current IRA limits at


Let’s review the current IRA limits


Contribution Limits   2018 2019
Traditional IRA  
Traditional IRA Contribution Limit  $5,500  $6000
Traditional IRA Contribution Limit if 50 or over  $6,500  $7000
If you’re covered by retirement at work:*
IRA Income Limits (AGI) – For single filers phase out starts at:  $63,000  $64,000
Ineligible at  $73,000  $74,000
IRA Income Limits- For married filers phase out starts at:  $ 100,000  $103,000
Ineligible at:  $121,000  $123 See,000
*Your deduction is allowed in full if you (and your spouse, if you are married) aren’t covered by a retirement plan at work.
Roth IRA
Roth IRA Contribution Limit  $5,500  $6,000
Roth IRA Contribution Limit if age 50 or over  $6,500  $7,000
Roth IRA Income Limits (AGI) – For single filesr phase out starts at:  $120,000  $122,000
Ineligible at  $135000  $137,000
Roth IRA Income Limits- For married filers phase out starts at:  $189000  $193.000
Ineligible at:  $199000  $203,000


Minimizing Your Tax Bill is an American Pastime.

Be sure to pay your fair share but, try not to overpay. Do your research or get advice from a good CPA. And remember, Utah Heritage Credit Unon has IRAs and their fees are very reasonable. It’s a good place to get started until you have enough money to justify the services of a good Financial Planner.


Other Strategies


  1. You can take advantage of IRAs until the year your turn 70 1/2 as long as you have earned income.
  2. You can make a contribution for 2018 until April 15, 2018.
  3. For tax deferment. IRAs are as good as it get.


Your savings is federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government Agency. More information.

Utah Heritage Credit Union is an Equal Housing Lender.

More info