2015 Tax Planning, it is never to early to start!

While we all still think fondly of the holidays that have just passed, it is time to begin tax planning for the new year!  

It’s often wiser to get started early. That’s especially true wheen looking at contributions to tax-advantaged savings accounts. You should look to fund these as soon as you can, rather than putting them off to the last minute. The sooner you fund your 2015 IRA, your Health Savings Account, or your Section 529 education savings account (like College Savings Iowa), the sooner your funds are earning their returns tax-free.

So if you have cash on hand, here’s a new year’s resolution to keep today — fully fund your tax-advantaged savings accounts. Your limits for 2015:

• Individual Retirement Account: lesser of earned income or $5,500; if you will be 50 or over by year-end, the limit is $6,500. This applies whether your IRA is a Roth IRA or a traditional IRA. Roth IRAs have additional limits that disqualify higher income taxpayers, but for taxpayers without traditional IRAs, there is a "back door" that may lead to Roth IRA contributions.

• Health Savings Accounts for qualifying taxpayers with single coverage can be funded up to $3,350 for 2015. For taxpayers with family coverage, the limit is $6,650. Read more here.

• Section 529 plans have more flexible limits. The IRS explains:

Contributions can not exceed the amount necessary to provide for the qualified education expenses of the beneficiary. If you contribute to a 529 plan, however, be aware that there may be gift tax consequences if your contributions, plus any other gifts, to a particular beneficiary exceed $14,000 during the year.

Thanks to Roth & Co., P.C. for pulling these details together.