2010 IRA contribution deadline
While 2010 is in the history books, you can still make your 2010 IRA contribution. The deadline is April 18, 2011. Normally, the final deadline for making an IRA contribution for any year is the due date of the tax return for that year, which is for individuals filing an annual tax return is April 15. However, in 2011 you have 3 additional days, since the District of Columbia is celebrating Emancipation Day on April 15, and April 16 and 17 are over the weekend. Thus, the 18th became the new tax filing deadline as well as 2010 IRA contribution deadline for both Traditional for tax-deferred earnings and Roth for tax-free earnings IRAs.
For those who needs to set up a new IRA account, the best way to open it online. I highly recommend Vanguard due to its almost non existent maintenance costs and very low broker commissions for those who want to trade within their IRA account. Vanguard also has a reasonable minimum initial IRA contribution of $3,000. If you have an existent 401(k) plan and want to rollover into IRA, Vanguard process is very simple and short.
In order to contribute to either Roth or Traditional IRA by the 2010 deadline, you must have earned income equal to or greater than your contribution. To contribute into Traditional IRA you must be younger than 70½, while Roth IRA has income limitations.
Maximum contribution for Roth or Traditional IRAs is $5,000 for 2010 tax year if you are younger than 50 years and $6,000 if you are older than 50. However, maximum Roth IRA contribution can be limited due to your income. Previously, Roth IRA conversion in 2010, rules, income limit, eligibility.
Tue Apr 5, 2011 10:04AM | Copyright: www.bad-credit-advisor.com | More in Personal Finance | Comments (0)
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