J.K. Lasser's 1001 Deductions and Tax Breaks 2013: Your Complete Guide to Everything Deductible

CHAPTER 5

Retirement Savings

Alert

At the time this book was printed, Congress had not extended numerous breaks for 2012 that had expired at the end of 2011. Check the online supplement in February 2013 at www.jklasser.com or www.barbaraweltman.com to see whether these breaks apply for 2012 returns.

Your Social Security benefits alone, or even retirement benefits derived from employer contributions to retirement plans on your behalf, won't provide you with the financial security you want for your retirement years. You need to save so that you'll have the assets to generate income after you stop working. Fortunately, the tax law provides important incentives to encourage your personal savings in special retirement accounts. You may be able to write off your savings (contributions) as well as qualify for special treatment when you start drawing from these savings.

This chapter explains:

• Traditional IRAs
• Roth IRAs
• IRA rollovers
• 401(k) and similar plans
• Self-employed retirement plans
• SEPs
• SIMPLEs
• Retirement saver's credit
• Custodial/trustee fees
• Employer-paid retirement planning advice
• Charitable transfers of IRA distributions

If you are an employer, you may be eligible for a tax credit for starting a qualified retirement plan for your business. This credit is explained in Chapter 15.

For more information see IRS Publication 560, Retirement Plans for Small Business; IRS Publication 575, Pension and Annuity Income; IRS Publication 590, Individual Retirement Arrangements (IRAs) ...