2009 IRA Contribution

You have till April 15th to contribute to your IRA and credit it to your 2009 tax returns. This means you could start an IRA account before tax day and make a $10,000 contribution. You can put in $5000 for 2009 and 2010. There are plenty options, the most popular being a ROTH IRA and a Traditional IRA.

A Traditional allows you to take deduction on your tax return for the year that you contributed. Your gains (hopefully it grows) will be taxed when you take distributions for retirement.

A ROTH does not allow for a tax deduction the year you contribute but all gains are tax-free. You put it away for your retirement and never pay taxes on the gains.

I like the ROTH option. There are only a few ways that the government allows you to gain capital with keeping their hands to their own blessed selves. But the ROTH allows this. Your gains grow faster if they don’t take a cut.

Start saving today. The future will be here tomorrow.

Quotable Quote: The Lord gave us two ends – one to sit on and the other to think with. Success depends on which one we use the most. – Ann Landers

Published in: on April 12, 2010 at 1:29 am  Leave a Comment  

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