Can IRAs be opened only when filing taxes

[drtownhouse]

Hi - I've read up quite a bit on the differences between traditional IRAs and Roth IRAs; however, I have not found an answer to this question. I noticed that TurboTax asks you this when you file and was wondering if I have to do it with the taxes.

If you could open a roth IRA at any point during the year, it would seem that it makes most sense to do so in January when your tax bracket is the lowest (and before it's in the 25-28% range).

I'm in the process of buying a house, and am hesitant to move $5,500 into an IRA because I don't want to gum up the works.

Appreciate any input on IRAs and timelines.

Thanks!

[arebelspy]

It can be opened at any time.

Your tax bracket does not rise throughout the year.  Each year your bracket for the previous year is calculated when you do your taxes based on your total income (and deductions, etc.)

[drtownhouse]

It can be opened at any time.

Your tax bracket does not rise throughout the year.  Each year your bracket for the previous year is calculated when you do your taxes based on your total income (and deductions, etc.)

Ah, but if you are single and earned $36,250, you still pay 10% on the first $8,925 of income and 15% on the rest, correct?

[arebelspy]

But when you contribute it in does not affect that.