Comments on: Roth IRA Contribution Deadline: When You File Your Taxes

By: Philip Taylor

Philip Taylor — Thu, 01 Jan 1970 00:00:00 +0000

@MissS @Philip @MissS You are exactly right. I mistakenly thought this was my Traditional IRA post. The filing date still applies, but there is no tax savings (at least initially).

By: MissS

MissS — Thu, 01 Jan 1970 00:00:00 +0000

@Philip Taylor @MissS Thanks! However, I thought Roth IRA’s weren’t tied to your taxes so it wouldn’t matter and you wouldn’t need an amendment. Can you explain this further?

By: Philip Taylor

Philip Taylor — Thu, 01 Jan 1970 00:00:00 +0000

@MissS To my knowledge, you would have to amend your 2011 return to be able to make a contribution for that year and have it apply. You choice is to make the contribution for 2012 or amend your return. Get with a local CPA to be sure though. It could mean significant tax savings this year depending on the amount of contribution.

By: MissS

MissS — Thu, 01 Jan 1970 00:00:00 +0000

I have a question – I already filed my taxes but I want to contribute some more money today. It is asking if I want to apply this contribution to the 2011 tax year or the 2012. Not sure which to choose or why! Please help?

Thanks!

By: thomas

thomas — Thu, 01 Jan 1970 00:00:00 +0000

Thanks for the round up. Great advice.

By: My Journey

My Journey — Thu, 01 Jan 1970 00:00:00 +0000

PT & Jeff,

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.

By: PT

PT — Thu, 01 Jan 1970 00:00:00 +0000

@Totally Lost – You have until April 15th, 2009 or your tax filing day to open and fund the 2008 Roth IRA. So, just know that you have plenty of time.

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.

By: Totally Lost

Totally Lost — Thu, 01 Jan 1970 00:00:00 +0000

Hello there,
My husband and I (both around age 30) know we must open IRAs immediately, but neither one of us knows the first thing about it. I know that we are eligible for Roth and can only open with a small amount now. Also, we know that we want an account that is very low maintenance. I’ve been reading a lot about opening these accounts online – i.e. through T.Rowe Price or Vanguard. Is this wise for people like us? Or are we better off getting some actual advice with an actual person? Thanks!

By: Jeff Rose

Jeff Rose — Thu, 01 Jan 1970 00:00:00 +0000

@PT and @My Journey

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.

By: My Journey

My Journey — Thu, 01 Jan 1970 00:00:00 +0000

Jeff,

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.