Contributions to IRA’s must be made by April 15th of the following calendar year, regardless of whether or not an extension has been filed by the taxpayer. Contributions may be made between January 1 and April 15 for the previous year, the current year or both. All IRA contributions must be made in cash.
All IRA accounts are held in the name of the custodian for the benefit of the account holder. Traditional custodians include banks, broker dealers, and mutual fund companies.
Individuals who establish IRA’s have a wide variety of investments to choose from when deciding how to invest the funds. Investors should always choose investments that fit their investment objectives. The following is a comparison of allowable and non- allowable investments:
|Mutual Funds||Tangibles / Collectibles / Art|
|ETF / ETNs||Speculative option trading|
|Annuities||Term life insurance|
|Limited Partnerships||Real estate|
|US minted coins|
It is Not Wise To Put A Municipal Bond In an IRA
Municipal bonds or municipal bond funds should never be placed in an IRA, because the advantage of those investments is that the interest income is free from federal taxes. Because their interest is free from federal taxes, the interest rate that is offered will be less than the rates offered by other alternatives. The advantage of an IRA is that money is allowed to grow tax deferred, therefore an individual would be better off with a higher yielding taxable bond of the same quality.
Rollover Vs. Transfer
RetirementYou're not allowed to hold every kind of asset in an IRA. What can you include – and which ones are banned?
RetirementTo answer this question, you need to consider several of the factors we outline here.
RetirementEager to save for retirement? Learn how to avoid overpayment penalties.
RetirementThere are many IRA options available that vary depending on what you want to do with your retirement savings.
RetirementA traditional IRA is a tax-advantaged retirement account that includes stocks, bonds, mutual funds and other investments.
TaxesIf you have an IRA, you'll be getting this form. Here's the useful information it contains.
RetirementA traditional IRA gives you a current-year tax benefit and future years of tax savings – minus the income restrictions that limit who can have a Roth IRA.
RetirementMany financial experts and educators believe that the earlier children begin learning about money, the better their chances for financial stability in the future.