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| *Loan,banking and credit>>>deferred tax |
Why is there a deadline to contribute to a Roth IRA for 2005 of 04/17/06 if a Roth IRA is not tax deferred> |
Traditional IRAs are tax deferred so you can deduct any contributions on your tax return. Roth IRAs are not tax deferred so no deduction is permitted. There are annual contribution limits for IRAs(Roth or Traditional), so you can actually contribute more during the same calendar year if you have not reached your 2005 limit. The limit is $4000 for those under 50. If you made a $2000 contribution in 2005, you could still contribute another $2000 before April 17th and still have your full 2006 limit to contribute $4000 during the year. Source(s): http://beginnersinvest.about.com/cs/iras... http://www.irs.gov Because you are limited in how much you can put into it in a year. They have to reset the clock, so to speak, at some point. I dont understand. why are you contributing to the IRA? (ooh i crack myself up sometimes) That's the rules. You only get to contribute once per year to a Roth IRA. You can't save up the contributions for the last 10 years and contribute them all in one year. If you don't contribute by the due date of your 2005 return, you'll lose that opportunity to contribute to your Roth IRA for the 2005 tax year. However, you can make a contribution to your 2006 Roth IRA anytime up to next April's (2007) deadline for the 2006 tax filing year. |
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