When to Make Your ContributionsTaxpayers typically have until their taxes are due to fund a traditional IRA or Roth IRA for the previous tax year. For example, taxes are due on April 15, 2013 for income earned in 2012. You have until April 15, 2013 to fund your IRA and claim a deduction against income earned in 2012.
However, the earliest you can fund an IRA for 2012 income is January 1, 2012. That is fifteen and one-half months before the latest funding date of April 15, 2013.
If your IRA earned eight percent, funding it on January 1, 2012 instead of April 15, 2013 could mean a significant difference in its value over time. For example:
The longer your money stays invested, the harder it can work for you. Fund your IRA at the earliest possible date and you could benefit.