Hey guys, I am just starting my journey of saving for retirement and I needed some clarification. I know that you can contribute to your IRA through April 15th for the previous year. My question is, does that only apply to existing accounts, or can I open one now in 2015, and still contribute for 2014. Thanks in advance for the info!
@Zz_JC_zZ wrote:Hey guys, I am just starting my journey of saving for retirement and I needed some clarification. I know that you can contribute to your IRA through April 15th for the previous year. My question is, does that only apply to existing accounts, or can I open one now in 2015, and still contribute for 2014. Thanks in advance for the info!
AFAIK can open it now if we're talking Roth or standard IRA (non-SEP or similar).
@Revelate wrote:
@Zz_JC_zZ wrote:Hey guys, I am just starting my journey of saving for retirement and I needed some clarification. I know that you can contribute to your IRA through April 15th for the previous year. My question is, does that only apply to existing accounts, or can I open one now in 2015, and still contribute for 2014. Thanks in advance for the info!
AFAIK can open it now if we're talking Roth or standard IRA (non-SEP or similar).
I am not sure i thought you had to open it by end of 2014 before you can contribute to it for 2014 year. I could be totally wrong about that though. So if you open it now i think it would only count for 2015 year, i am not 100% sure about that though. I would ask whichever company you open your ira with for the specifics.
I'm going with a Roth IRA through Vanguard. I'll just email them and get some clarification. Thanks for the input guys!
@Zz_JC_zZ wrote:I'm going with a Roth IRA through Vanguard. I'll just email them and get some clarification. Thanks for the input guys!
Checked Google, was right, last day to contribute to a Roth IRA is April 15th 2015. Bunch of reputable sources.
Not to thread hijack but I was about to post a similar sitution, so please excuse me OP. My question, to go along with his, is... is it going to benefit me to contribute starting now for the end of the year or should I just start fresh with 2015 in April? I didn't know if it's like AMEX's backdating where I would get credit for all of 2014 by contributing now, or if I can build some more up and make a significant contribution for the new year in April?
Personal:
@Broke_Triathlete wrote:Not to thread hijack but I was about to post a similar sitution, so please excuse me OP. My question, to go along with his, is... is it going to benefit me to contribute starting now for the end of the year or should I just start fresh with 2015 in April? I didn't know if it's like AMEX's backdating where I would get credit for all of 2014 by contributing now, or if I can build some more up and make a significant contribution for the new year in April?
If you're asking what I think you're asking, contribute for 2014; the contribution limits are per year, so any year you don't contribute you're losing time. That way you can save up the contribution for next year and then deposit 2015 too and so on.
Contribution is up to a maximum per year, doesn't matter when you make the contribution, but you want to contribute to the earlier year ASAP such that you can do a 2015 contribution as well. If you wait past April 15th you've lost the 2014 contribution window, suboptimal.
Ah I never thought of that. That makes sense. So I'm basically getting to contribute double this year because I'm so close to the cutoff. So roll around to next February I can have $11,000 in instead of just $5,500.
@Revelate wrote:
@Zz_JC_zZ wrote:I'm going with a Roth IRA through Vanguard. I'll just email them and get some clarification. Thanks for the input guys!
Checked Google, was right, last day to contribute to a Roth IRA is April 15th 2015. Bunch of reputable sources.
Sort of right.
You can contribute up to the due date for your taxes. April 15 is the due date
for individual taxes unless you file an extension. The automatic extension is
till Oct 15 and if you file an extension you can contribute to an IRA until that date.
One difficulty is that most IRA custodians don't accomodate the late contributions
very easily and you'll have to go through some phone tag or in person visit to get
the deposit made late. But they absolutely can do it. I don't know how difficult it
would be to open a new account late, but I would guess its a hassle.
Best plan is to make your contributions by April 15 if you can. Use an extension
only if circumstances require it.
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