This is a friendly reminder that the deadline for 2022 IRA contributions is April 18th, 2023.
Here are a few questions to ask yourself before contributing:
- How much am I able to contribute this year?
- Will I be able to deduct my contribution?
- Am I over the income limits for a contribution?
- Can my spouse contribute?
- Should I make a traditional IRA, Roth IRA, or SEP IRA contribution?
- Did I already make a partial contribution for 2022?
- Can I make a contribution on behalf of my children?
If you do not know the answers to these questions, remember to consult your financial advisor and tax consultant before deciding!
Finally, the most important thing to remember is not to wait until the last minute to contribute. Checks can be lost during transfer, the mail system can be slow, and bank transfers might be unexpectedly delayed. A good rule of thumb is to send your contribution no later than April 1st.
Some IRA’s have contribution limitations and tax consequences for early withdrawals. For complete details, consult your tax advisor or attorney. Distributions from traditional IRA’s and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59 ½, may be subject to an additional 10% IRS tax penalty.
