Guest Derrick Posted January 15, 2005 Posted January 15, 2005 Hi I have a question regarding IRA contributions. Hopefully some one can help me. I contributeto my Roth IRA monthly by dollar cost averaging. In 2004 I contributed $1500. I have since came into a bit of cash and would like to top up my 2004 contribution to the $3,000 maximum. Can I still do this in the 2005 calander year and if so what would be the drop dead date to do this. I also plan on maxing out my 2005 Roth limit. Your help would be appreciated!
ElGuapo Posted January 15, 2005 Posted January 15, 2005 You sure can. You have until your tax filing deadline (Apr 15) to make what they call a "prior-year contribution" for 2004. The best thing to do would be to get that money and this year's "current-year contribution" in right away--the sooner it starts growing tax-free the better. This is assuming, of course, that you are eligible to contribute for both years.
John G Posted January 17, 2005 Posted January 17, 2005 Prior message was spot on. Be sure if you are contributing for two years that the custodian properly designated the year when the contribution is made. Best to write two checks and make sure on your check it states the year. Also, your limit this year is $3,500 if you are over the age of 50. Your limit next year bumps up to $4,000.
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