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Pay It Forward: IRA/HSA Carry Back Contributions Deadline is April 18, 2016

For many, the end of the year can be a busy and stressful time. Holiday celebrations, visits with family and friends and end of year deadlines make it easy to forget some important things - like making a contribution to your Individual Retirement Account (IRA) or Health Savings Account (HSA).

If you did not make a contribution prior to December 31, 2015, don’t panic; there’s still time. You actually have until April 18, 2016, the date tax returns are due, to make a contribution; even if you have not opened an IRA or HSA account yet. As long as you were eligible in 2015, you can still make contributions, up until the April 18 deadline. This is known as a “carry back,” or prior year contribution.

IRA contribution limits are based on the contributor’s age. For example, if you are under age 50, the maximum amount you can contribute to a Roth and/or Traditional IRA before the April 18, 2016 deadline is $5,500. And if you are aged 50 or over, the maximum amount you can contribute is $6,500.

Like IRAs, HSA contribution limits vary from year to year. For 2015, the HSA contribution limit is $3,350 for an individual and $6,650 for a family. If you are aged 55 and older, you can save an additional $1,000, bringing the contribution limits to $4,350 for an individual and $7,650 for a family.

At Delta Community, IRA or HSA contributions can be made through online banking, or in person at a branch location. Just be sure to designate in writing that the contribution is for 2015.

Whenever you decide to make a contribution, or if you just need help opening an IRA or HSA account, remember that Delta Community is here to help answer questions and provide assistance as a trusted financial advisor.

Pay it forward and resolve to get more out of your finances by contributing to an IRA or HSA account prior to the April 18 deadline. And don’t forget to plan ahead for 2017 by making those contributions earlier in the year, so that any gains on your money are compounded over a longer period of time.