How To Know When and How To Make Those 2011 IRA Contributions

Know the Due Date:2011 contributions must be made by April 17, 2012.Review Publication 590: 2012 is just around the corner – now is the time to remind everyone about the IRS Publication 590 rules in relation to when contributions can be made to your account. According to IRS Publication 590: Contributions must be made by due date for both Roth and Traditional IRAs: Contributions can be made to an IRA for a year at any time during the year or by the due date for filing a return for that year, not including extensions. This means that contributions for 2011 must be made by April 17, 2012. Understand the 70½ Rule: Age 70½ rule (pertains to Traditional IRAs only): Contributions cannot be made to a traditional IRA for the year in which a person reaches age 70½ or for any later year. A person attains age 70½ on the date that is six calendar months after the 70th anniversary of their birth. If they were born on or before June 30, 1940, they cannot contribute for 2010 or any later year. Designate Year for Which Contribution is Made: If an amount is contributed to an IRA between January 1 and April 18, tell the sponsor which year (the current year or the previous year) the contribution is for. If the sponsor is not told which year it is for, the sponsor can assume, and report to the IRS, that the contribution is for the current year (the year the sponsor received it). Check IRS Guidelines If You are Filing Before You Make a Contribution: Filing before a contribution is made:   A person can file a return claiming an IRA contribution before the contribution is actually made. Generally, the contribution must be made by the due date of their return, not including extensions. Be Aware That Contributrions Are Not Required: Contributions not required:  A person does not have to contribute to their IRA for every tax year, even if they can.  Know the Benefits of Opening a SelfDirected IRA: While there are definitely deadlines for making contributions to your IRA, it is never too late to open a Self Directed IRA. In fact, we find that the last quarter of the year is our busiest time as many people reflect on the performance of their investments and decide that it is time for them to take control of their accounts. Our clients are always overwhelmingly pleased when they begin to experience the freedom of in non-traditional assets such as real estate, private lending, limited liability companies, precious metals and much more! 

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