ndividual Retirement Accounts are an important way to save for retirement. If you have an IRA or may open one soon, there are some key year-end rules that you should know. Here are the top four reminders on IRAs from the IRS:

1. Know the limits.  You can contribute up to a maximum of $5,500 ($6,500 if you are age 50 or older) to a traditional or Roth IRA. If you file a joint return, you and your spouse can each contribute to an IRA even if only one of you has taxable compensation. In some cases, you may need to reduce your deduction for traditional IRA contributions. This rule applies if you or your spouse has a retirement plan at work and your income is above a certain level. You have until April 15, 2015, to make an IRA contribution for 2014.
2. Avoid excess contributions.  If you contribute more than the IRA limits for 2014, you are subject to a six percent tax on the excess amount. The tax applies each year that the excess amounts remain in your account. You can avoid the tax if you withdraw the excess amounts from your account by the due date of your 2014 tax return (including extensions).
3. Take required distributions.  If you’re at least age 70½, you must take a required minimum distribution, or RMD, from your traditional IRA. You are not required to take a RMD from your Roth IRA. You normally must take your RMD by Dec. 31, 2014. That deadline is April 1, 2015, if you turned 70½ in 2014. If you have more than one traditional IRA, you figure the RMD separately for each IRA. However, you can withdraw the total amount from one or more of them. If you don’t take your RMD on time you face a 50 percent excise tax on the RMD amount you failed to take out.
4. Claim the saver’s credit.  The formal name of the saver’s credit is the retirement savings contributions credit. You may qualify for this credit if you contribute to an IRA or retirement plan. The saver’s credit can increase your refund or reduce the tax you owe. The maximum credit is $1,000, or $2,000 for married couples. The credit you receive is often much less, due in part because of the deductions and other credits you may claim.

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Additional IRS Resources:

• Publication 590, Individual Retirement Arrangements (IRAs)
• Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts

WASHINGTON – The Internal Revenue Service has begun issuing Records of Completion to tax return preparers who have met the requirements of a new voluntary program designed to help taxpayers determine return preparer qualifications in 2015.

Practitioners who want to participate in the new IRS Annual Filing Season Program (AFSP) for 2015 must complete the continuing education (CE) requirements by December 31, 2014.

The AFSP Record of Completion allows uncredentialed return preparers who complete required CE to be included in a new Directory of Federal Tax Return Preparers with Credentials and Select Qualifications scheduled to launch on the IRS website in early 2015.

“This will be part of a wider effort at the IRS to help taxpayers understand the options available if they need help with their taxes during the upcoming filing season,” said IRS Commissioner John Koskinen.

For 2015, the AFSP generally requires return preparers to complete 11 hours of CE, which includes a six hour Annual Federal Tax Refresher course, three hours of other federal tax law topics and two hours of ethics. Certain categories of return preparers who have passed recognized tests administered by states and other organizations can participate in the program by obtaining eight hours of continuing education. All CE courses must be obtained from IRS-approved CE providers.

Specific requirements are outlined at: www.irs.gov/Tax-Professionals/Annual-Filing-Season-Program.

A list of all IRS-approved CE providers offering qualifying courses is available online.

Credentialed return preparers (attorneys, certified public accountants and enrolled agents) have already been licensed or certified by the state bar, a state Board of Accountancy, or the IRS and have higher levels of qualification and practice rights. They have unlimited representation rights before the IRS and may represent their clients on any matters before any IRS office.

Consent to Circular 230 restrictions

As a prerequisite to receiving a record of completion, a return preparer is required to consent to the duties and restrictions relating to practice before the IRS in subpart B and section 10.51 of Treasury Department Circular No. 230.

After renewing their preparer tax identification number (PTIN) and obtaining the required CE, return preparers will receive a communication from the IRS advising them they are eligible to log into their online PTIN account, consent to the Circular 230 restrictions, and print their AFSP record of completion.

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IRS News Release IR-2014- 75, New IRS Filing Season Program Unveiled for Tax Return Preparers