When is the best time to open an IRA account?

I had a 403(b), but contributions stopped when I changed jobs. Can I open an IRA account with funds from my ordinary savings account before the April tax return deadline and claim a tax credit?

IRAs, Tax Deductions / Credits
Answers
Sort By:
Most Helpful
January 2017
50% of people found this answer helpful

It’s always a good time to save more for retirement. Yes, so long as you have earned income during the year, you may make contributions to an Individual Retirement Account – IRA, it doesn’t matter that the funds are coming from a savings account.

Most people that contribute to an IRA receive a tax deduction for the year in which they make the contribution. You’ll want to review this information from the IRS to determine your eligibility to deduct IRA contributions.

You are also correct that you can make IRA contributions for the previous tax year up until the IRS tax filing deadline, typically April 15th of the next year. Make sure to let the financial institution know that your intention is for the contribution to count for the previous tax year.

January 2017
January 2017
January 2017