What’s the Roth IRA contribution deadline?
That’s a great question, and you need to know the answer if you want to avoid missing an opportunity to contribute the maximum amount for the year.
So what’s the answer?
It’s the same as the deadline for filing your taxes… April 15th.
So let’s take a closer look at how this effects you.
April 15: The Roth IRA Contribution Deadline
You have until April 15th of the year following the year in which you wish to contribute to make a contribution to your Roth.
Does that sound a bit confusing?
Let’s look at a hypothetical example…
Suppose it’s January 12, 2010, and you’re reviewing your year-end financial position. In doing so, you realize you only contributed $4,000 to your Roth in 2009, when your maximum contribution limit was $5,000.
Is it too late to make the maximum contribution for 2009?
Absolutely not.
In fact, you have until April 15, 2010 to contribute the additional $1,000 to Roth IRA for the 2009 tax year. After April 15, 2010, any Roth IRA contributions you make will count toward the 2010 year.
Of course, there’s nothing stopping you from making a contribution toward the 2010 tax year in January either. But it’s always a good idea to max out one tax year’s contributions before moving on to the next, that way you don’t limit yourself later in the year and you get to contribute as much as possible to your retirement fund.
So what does this teach us?
Between January 2 and the April 15 Roth IRA contribution deadline, you’re eligible to make a Roth contribution for either the current year or the previous year, assuming you haven’t already made the maximum contribution for the previous tax year.
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