Jeff Rose from Good Financial Cents is encourage young adults to starting saving now and start saving often utilizing the Roth IRA. Calling it The Roth IRA Account Movement, Jeff has solicited over 140+ personal finance bloggers on board to all write about the Roth IRA on the same day – us included!
We wanted to use this opportunity to make sure you don’t miss the IRA contribution deadline! Make sure you make your 2011 IRA contribution by April 17, 2012.
If you’ve been contributing $50 or $100 to an IRA each month, there’s room to contribute a lot more. Putting $600 or $1,200 in your IRA annually is nice, but you can direct up to $5,000 into your IRA for the 2011 tax year (and as much as $6,000 if you turned 50 in 2011).1
This $5,000 (or $6,000) annual IRA contribution can be split across multiple IRAs, both traditional and Roth. Your maximum contribution may be reduced if your modified adjusted gross income, or MAGI, is really high.
As for your 2012 IRA contribution … you have until April 15, 2013 to make it, but why wait? You can also make it this year and cross it off your to-do list. There’s really no point in waiting until April 2013 – if you wait that long, you’ll potentially lose 16+ months of interest and compounding on that money.
Go open a Roth IRA account today!