If I told you once I’ve told…

I repeat myself once a year and now I’m doing it again. So pay attention this is important.

It’s not too late to contribute to your IRA!

Yes, it’s tax time and that is your clue. If you haven’t maxed out your 2009 contributions you’ve still got time to milk your IRA for all of the tax deductions that it is worth. So grab the kids and pull out the couch cushions to gather up all the spare money you can.  Contributions credited to 2009 can be made up until April 15th, but don’t wait that long. Doing so will cause you panic and headache because then you’ll be filling out your tax returns at the last-minute. That’s never a good plan.

Why the last-minute rush? IRA contributions may be tax-deductible and therefore will lower your tax obligation.

IRA contribution limits are as follows:

  • $5,000 if you are age 49 or younger,
  • $6,000 if you are age 50 or older

Note that these are the maximums for both the Traditional and Roth IRAs, however, Roth contributions are not tax-deductible.

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