I was a little short on maximizing my contributions to my Roth IRA last year. Luckily, I was only a few hundred dollars shy. I called up my friends at Vanguard (http://www.vanguard.com) and they helped transfer money from my general investing account to last year’s IRA.
Notes On Contributing To Last Year’s IRA.
There’s a limit of $4,000 for 2006.
For 2006, the maximum amount of money you can contribute into your IRA is $4,000. $4,000 for 2007. $5,000 for 2008. It’s a bit higher if you’re 50 years old or older.
If you contributed money in 2007 for 2006, your 2006 taxes will not be affected.
You don’t need a new tax forms. The ones your respective brokerages sent you are just fine.
The deadline for maxing out last year’s IRA is April 15 the following year.
Suppose you didn’t max out your 2006 contributions for your IRA. It’s January 2007. You can still contribute to 2006’s IRA. Once April 15, 2007 passes, you’re screwed.
It’s important to max out last year’s IRA before contributing to this year’s IRA.
There’s a maximum amount of money you can put into an IRA each year. You’ll be able to put more money into your retirement by taking advantage of these IRA time windows.