Today’s the Day for IRA’s
Opening an IRA can save you a few bucks on your tax return, and although the year ended in December, the deadline for opening an IRA is actually by Tax Day.
Roth IRA Contribution Limits
The maximum contribution limits are the same for both Roth and traditional IRAs. In 2006 and 2007, the standard contribution maximum to a Roth IRA is $4,000. In 2008 and 2009, the contribution limit moves up to $5,000.
If you reach age 50 or older in a calendar year, then you’re entitled to take a catch up contribution. In the years 2006 through 2009 the catch up contribution limit is $1,000. However, because the standard contributions are different in 2006 and 2007, you can contribute up to $4,000 + $1,000 or $5,000, while in 2008 and 2009 you can contribute up to $5,000 + $1,000 or $6,000.
You can open up an IRA at http://mystockfund.banks.com and if this sounds like enough work for one day, go ahead and file a tax extension and wait until October.
The best way to file a tax extension online is by going to 1040.com and fill out a few secure online forms. It will give you an estimate on taxes owed, and provide you with printable vouchers if needed. extension.1040.com also offers software for preparing and efiling your return, so when you are ready to revisit your taxes, you won’t need to look for another service provider.
