Individual Retirement Accounts Are An Important Way to Save for Retirement.

If you have an IRA or may open one soon, there are some key year-end rules that you should know. Here are the top four reminders on IRAs from the IRS:

  1. Know the limits.  You can contribute up to a maximum of $5,500 ($6,500 if you are age 50 or older) to a traditional or Roth IRA. If you file a joint return, you and your spouse can each contribute to an IRA even if only one of you has taxable compensation. In some cases, you may need to reduce your deduction for traditional IRA contributions. This rule applies if you or your spouse has a retirement plan at work and your income is above a certain level. You have until April 15, 2015, to make an IRA contribution for 2014.
  2. Avoid excess contributions.  If you contribute more than the IRA limits for 2014, you are subject to a six percent tax on the excess amount. The tax applies each year that the excess amounts remain in your account. You can avoid the tax if you withdraw the excess amounts from your account by the due date of your 2014 tax return (including extensions).
  3. Take required distributions.  If you’re at least age 70½, you must take a required minimum distribution, or RMD, from your traditional IRA. You are not required to take a RMD from your Roth IRA. You normally must take your RMD by Dec. 31, 2014. That deadline is April 1, 2015, if you turned 70½ in 2014. If you have more than one traditional IRA, you figure the RMD separately for each IRA. However, you can withdraw the total amount from one or more of them. If you don’t take your RMD on time you face a 50 percent excise tax on the RMD amount you failed to take out.
  4. Claim the saver’s credit.  The formal name of the saver’s credit is the retirement savings contributions credit. You may qualify for this credit if you contribute to an IRA or retirement plan. The saver’s credit can increase your refund or reduce the tax you owe. The maximum credit is $1,000, or $2,000 for married couples. The credit you receive is often much less, due in part because of the deductions and other credits you may claim.

Local Financial Services Professionals Attend National Conference in New Orleans

WEST ORANGE, N.J., July 14 /PRNewswire/ — H.D. Vest Advisors Anthony DeFranco and Nelson Couto of West Orange recently attended the 24th annual National Conference of H.D. Vest Financial Services®. The National Conference was held at the Sheraton New Orleans and Marriott New Orleans hotels in New Orleans, LA, June 7-10, 2010. At the conference, DeFranco and Couto chose from customized courses and sessions by top experts, including breakout sessions, and general sessions as well as exhibits and special events. Anthony and Nelson gathered new ideas for helping their clients work toward their financial goals.

“H.D. Vest Advisors who attend National Conference always learn new ways to support their clients,” said Roger Ochs, H.D. Vest president. “This year’s National Conference provided Advisors with the tools and knowledge to help their clients and network with other Advisors and solution providers.”

DeFranco and Couto heard from informative keynote speakers this year, including H.D. Vest President Roger Ochs, Director of Investment Strategy and Asset Allocation with Wells Fargo’s Wealth Management Group Ron Florance, and International Performing Artist and Communications Catalyst Victoria Labalme.

Anthony DeFranco and Nelson Couto have been Advisors with H.D. Vest since 1996. They have been founding partners of Couto DeFranco, P.A., in West Orange, NJ since 1992.

Anthony DeFranco and Nelson Couto serve the needs of individuals, corporations, partnerships, trusts, estates and foundations providing traditional brokerage accounts, fee-based managed accounts, private money management, individual and business retirement plans, education planning, stocks, bonds, mutual funds, life, disability and long-term-care insurance, variable and fixed annuities, multi-generational estate planning, comprehensive tax reporting, account consolidation and systematic investment plans.

About H.D. Vest, Inc.

Based in Irving, Texas, H.D. Vest Financial Services supports an independent network of tax and non-tax professionals who provide comprehensive financial planning solutions, including securities, insurance, money management services and Wells Fargo banking products. Approximately 5,200 independent contractors manage over $26 billion in assets for some 1.8 million individuals, families and small businesses in all 50 states. H.D. Vest became a non-bank subsidiary of Wells Fargo & Company in July 2001.

Securities offered through H.D. Vest Investment Services(SM), Member SIPC, Advisory services offered through H.D. Vest Advisory Services(SM), non-bank subsidiaries of Wells Fargo & Company, 6333 N. State Highway 161, Suite 400, Irving, TX 75038 (972) 870-6000.

SOURCE Couto DeFranco, P. A.