When do I need to open a Roth IRA?
The deadline for opening a Roth IRA account and making contributions is April 15th of the following tax year.
For instance, the deadline to make contributions for the 2016 tax year is April 17, 2017; that’s because the 15th falls on a weekend! So, open a Roth IRA on April 17, 2017 and make a deposit on that day and it counts toward your 2016 contribution. Oh, by the way, you can make the 2017 deposit as well. For those that don’t like to procrastinate, you can open a Roth IRA as early as January 1st of any year to make a deposit for that year.
These rules apply to a Traditional IRA as well. If you are not sure how to pick your investments or what is in your best interest, hire a fee-only investment advisor for fantastic guidance!
For more information or to get started with a Roth IRA today contact us.
Chesapeake Financial Advisors is a fee-only financial planning, investment advisory and tax preparation firm with offices in Towson, Bel Air and Columbia, Maryland.