I also checked with my advanced business and estate planning dept. It seems that a traditional IRA can be set up post new year to take advantage of 2008 contributions.

That being said it should still be noted that if you are going to set up a different type of qualified account (SEP, SIMPLE, etc.) it may have to be set up in the next 2 days.

I would recommend finding a non-commission, fee-only financial planner or CPA to advise you on (1) where to open the account and (2) what to invest in. At the same time, you need to make an effort to get the basic understanding of retirement accounts. There is a ton of free, quality information out there on the Roth IRA. Do some research yourself and get comfortable with the terminology so that you don’t have to blindly trust someone else. Best of luck.

My Journey, I think we may have been mistaken. I contacted my IRA department and in regards to traditional and Roth IRA’s, you have until the tax deadline of April 15th to get it open. Woops!

I think what we may have been thinking of is business retirement plans. SEP IRA’s have to be established before the year end. Simple IRA’s have until the end of October.

Hope this clarifies. Sorry for the misinformation.

Thanks for getting my back! LOL JK. PT, if Jeff can’t find it I will call my advanced planning dept on Monday.

It has to do with the theory that the IRS is allowing you to contribute to your 2008 IRA into 2009 but if you don’t have a 2008 IRA you can’t contribute into it in the year 2009 until April.

Honestly, it’s just a rule that’s kind of always been passed down to me since I got it in the business. I’ve never actually tried to find it in the IRS regs.

First thing Friday, I’ll contact my IRA department to clarify and see if I can get an exact answer. Keep you posted….

My Journey is right. The account has to be established before year-end so that you can contribute for the 2008 tax year.

For example, you cannot open an IRA on January 1, 2009 and then make a contribution for 2008. Keep in mind that this is only for folks that haven’t opened an IRA yet. If you already have one, no need to sweat.

I just did this for a lady yesterday. We’ve opened the IRA this year (in my firm’s case and some others, no money is required-check to make sure) and will decide closer to April 15th of next year how much we will contribute.

Don’t put off till next year opening the Roth if you haven’t yet. You got till next Wednesday