begin Roth now or after April 17th?

[Guest calluke]

First off, I've posted a few times in the past few weeks and each time I've gotten great advice. Thank you to all!

Now that I am positive I want to begin a Roth IRA, I'm not sure if I should begin it before April 17th for this past years taxes or after? Or does it matter?

I would be looking to contribute $3000-$4000. Thanks in advance!

[JanetM]

If you wait you will the ability to contrbibute for 2005. Do one now for 2005 then save in the coming year for 2006. Get a jump start.

[jevd]

I agree with janet M.

If you have it, do it for 2005 or you lose that opportunity. You could then start a monthly automatic contribution for 2006 with the remaining months left.

[namealreadyinuse]

You don't have to wait, right? If you make an IRA contribution now, you can designate whether it is for 05 or 06. Make it for 05 if you are eligible for Roth.

[John G]

I think Janet's message is missing the word "eliminate", as in if you wait, you eliminate the opportunity to contribute to 2005. If you act now, you can contribute under 2005 rules leaving open the possibility to add more in the coming 12 months using the 2006 rules. If your personal finances change in a positive way, you preserve the chance in increase your Roth contributions.

Yes, for the next two weeks, you can contribute to a Roth/IRA and designate either 2005 or 2006 as the year.