Black Friday has come and gone, one of the busiest days of Christmas shopping for bargain hunters. Monday, November 27, 2006 is being predicted as a Black Monday for online record breaking Christmas shopping. Reports have it that this year, some shoppers are spending more than their earnings by using credit cards.
Nevertheless, some smart shoppers are avoiding the pressure of overspending by using their debit cards to limit their spending. Other shoppers are shopping online to avoid the pressure of impulse buying during the season of giving. While other shoppers are buying gift cards to make sure it’s a gift purchased that is one wanted by the receiver.
But the best shoppers, getting the bang for their buck, are those investing part of their extra money into IRA accounts. These shoppers are aware that by purchasing an IRA or Roth at the end of the year may reduce their taxable income. The amount deposited into these IRAs can be declared on this year tax return.
This is a treat for those who are 50 and older. These funds can be drawn when a person turns 591/2 years of year. These accounts are not just for older adults, and you have until April 15, 2006 to place these funds into a current account or to open a new account. In some cases, this may allow for a tax refund that might recoup some or all the money spent during the Christmas season. However, if these individuals fail to deposit these funds into the IRA before the April 15, 2006 deadline, IRS will impose a huge penalty. Remember it's your money.
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