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Still Time to Open and Fund Your IRA Before April 15th

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I originally posted this a couple of years ago as a reminder and it's time good advice if you have a bit more time before you file your taxes. Saving up for retirement and getting a tax break is a great deal if you qualify for it.

Deadlines for Contributing to Your IRA

Tax day, April 15, is fast approaching and I know some people are still working on getting their taxes done.  The good news is that waiting a bit later to do your taxes gives you some extra time to open and fund your individual retirement account for 2011 tax year, whether it’s a traditional or Roth.

What is the difference between a Roth IRA and a Traditional IRA?

If you’ve never opened an IRA before, you should review some of the pros and cons of a traditional or a Roth account. The main difference between the two IRAs has to do with when you’ll be taxed:

Sources: IRS Publication 590 and Wikipedia

How Should I Direct My Retirement Contributions for 2012?

It’s not too early to work on your 2012 contributions. You may even want to use your tax refund to put a chunk down in your IRA. Some financial gurus, like Dave Ramsey, encourage the following process to maximize your retirement contributions.

It’s a great place to start if you’re looking at where to allocate your money.

Photo Credit: sciondriver



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