IRAs are great tools for preparing for retirement.

Individual retirement accounts (IRAs) are a great way to save for your future so you can live comfortably after you retire. With tax season ending soon, we wanted to share a few IRA tips and inform you of a change in contribution limits for your IRA.

It’s not too late to make a contribution to your IRA and have it count for the 2012 tax year!  This kind of contribution, called a carryback contribution, allows you to add money to the balance of your IRA during the first part of 2013 and designate it as a contribution from 2012. The deadline to make a carryback contribution to your traditional or Roth IRA is April 15, 2013. This allows you to make extra tax-deductible contributions if you have a traditional IRA that you can claim for 2012.

Other big news for your IRA(s) is that the maximum contributions have changed. For 2013, the maximum amount you can contribute to all of your traditional or Roth IRAs is the smaller of $5,500 ($6,500 if you’re age 50 or over) or your taxable compensation for the year. The 2012 limits were $5,000, and $6,000 if age 50 or over.

We would also like to remind you to check your beneficiary designation for your IRA. Significant life changes such as marriages, divorces or death of family members may change who you want to benefit from your IRA.

Finally, we encourage you to simplify your finances when it comes to your old employer retirement plans by consolidating them with Lincoln Savings Bank. This will give you one centralized location for your IRA funds, making it much easier to manage. We employ IRA Specialists that can help you make the right decision for your financial future.

Call or stop in today to see how you we can help you successfully plan so that you can live the lifestyle you want without outliving your money in retirement.