It’s Not To Late To Fund an Existing IRA for 2010

Do you have an Individual Retirement Account account that you didn’t put money into in 2010, or maybe you contributed some money but didn’t hit the maximum contribution limits?  It is not too late!

According to the IRS guidelines, you may contributing to an existing IRA through April 15th of the following year.  Therefore, you may continue making contributions to your 2010 IRA account until 15 April 2011.  (Technically the 18th, but let’s not make this confusing.)  April 15th is Friday of this week, so the time to act is now.  This is only available for IRAs that were set up prior to December 31 of last year.  If you missed that cut-off, you’ll have to put your contribution in 2011.

Depending on your institution, this could be as easy as clicking a few buttons on the website or it could require you to send a physical check.  I just sent some money to my husband’s IRA with USAA and it took me just a few minutes online.  Be sure to note that your deposit is for the 2010 tax year, also called a prior year contribution.

For 2010, the maximum allowable contribution to an IRA account is $5,000, $6,000 for taxpayers over age 50.  There are income guidelines that apply to certain situations and they are nicely explained here at 20SomethingFinance.  (Great info even if you’re not 20Something.)

Please, please don’t feel discouraged if you aren’t able to make a maximum contribution to your IRA.  Every little bit adds up!

 

About the Author

Kate Horrell
Kate Horrell is a military financial coach, mom of four teens, and Navy spouse. She has a background in taxes and mortgage banking, and a trove of experience helping other military families with their money. Follow her on twitter @realKateHorrell.