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Learning, Sharing, and Teaching => Investor Alley => Topic started by: RhythmKats on December 21, 2013, 09:11:11 AM

Title: Opening an IRA before Jan 1, 2014
Post by: RhythmKats on December 21, 2013, 09:11:11 AM

I'm helping a friend open an IRA. I know she can make contributions for 2013 until Tax day '14. However, does she need to open and establish the IRA before the end of the calendar year?

Thanks!

Title: Re: Opening an IRA before Jan 1, 2014
Post by: Peony on December 21, 2013, 10:32:59 AM

I just spoke with my CPA about this yesterday and was told that the account (IRA) may be opened in 2014, before April 15. Does not have to be done in 2013.

Title: Re: Opening an IRA before Jan 1, 2014
Post by: RhythmKats on December 21, 2013, 10:36:28 AM

Thanks!

Title: Re: Opening an IRA before Jan 1, 2014
Post by: more4less on December 21, 2013, 01:43:38 PM

Guys, wait a second. When is the first day I can put next $5500 into my Roth IRA? I thought it's January 1... :-/

Title: Re: Opening an IRA before Jan 1, 2014
Post by: RhythmKats on December 21, 2013, 01:49:03 PM

more4less

I believe you are correct. You can begin contributions for 2014 on January 1st. However, it's my understanding you can also continue to make contributions for 2013 until Tax day in April '14.That is, of course, if you haven't yet maxed out for 2013.

Title: Re: Opening an IRA before Jan 1, 2014
Post by: wtjbatman on December 21, 2013, 06:22:27 PM

Quote from: more4less on December 21, 2013, 01:43:38 PM

Guys, wait a second. When is the first day I can put next $5500 into my Roth IRA? I thought it's January 1... :-/

RK is right. There's just a window where you're now able to put in money for your 2014 Roth, and still able to contribute to the 2013 Roth.

Title: Re: Opening an IRA before Jan 1, 2014
Post by: ender on December 21, 2013, 08:15:42 PM

Quote from: RhythmKats on December 21, 2013, 01:49:03 PM

more4less

I believe you are correct. You can begin contributions for 2014 on January 1st. However, it's my understanding you can also continue to make contributions for 2013 until Tax day in April '14.That is, of course, if you haven't yet maxed out for 2013.

Yep, this is what I did this year (put $5000 in my 2012 roth IRA in I think Feb of 2013).