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Tax Tips: IRA contributions

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One of the best ways to save for retirement and reduce your tax liability is with an individual retirement account or IRA.

Contributions -- can be made as late as the person due date of a tax return.

And they can be considered retro active to the previous tax year to be eligible funded hiring for particular year you'll need to have earned income.

For -- purposes only earned income consists of wages reported on a W two.

Self employment income from a business or farm and alimony.

You also must be under the age of seventy and a -- to contribute to a traditional IRA.

5000 dollars is the maximum contribution limits for 2011 tax year.

6000 if you're aged fifty or older so you definitely take advantage of that and and you have until April 17 to get that money.

Into your accounts that's today's taxed -- I'm Brenda Buttner Fox News.