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It's Not Too Late to Fund Your IRA

Savvy ATM: Fund Your IRA Before April 15

If you have an existing traditional IRA or Roth IRA it's not too late to make your 2007 contribution. And if you've been putting off opening an account, you still have time to get one up and running! The contribution limit for 2007 is $4,000 (or $5,000 if you're over 50), but that doesn't mean you have to meet the maximum. Every little bit counts! Make sure that you tell the company that holds your IRA to consider the contribution for 2007. Otherwise, they may mistakenly classify it for 2008. You have until April 15 to make the previous year (2007) contribution. The same rules don't apply for your 401(k) — any money that goes into that account in 2008 can only count as part of your current year contribution.

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mlen mlen 8 years
peachykeen19- start one now! it doesn't matter if you can't put in the full 4000, or if you even only put in a couple hundred, the sooner you start the better off you'll be. 1- you'll get in the habit of contributing, it'll be something you think about doing and you'll be more likely to put more aside in the future, 2- you aren't wasting that money on something else! i tend to take money from my year end bonus to fund my roth with, and i back date it, so i'll be funding my 2007 contribution today actually. while it would be a ton more fun to go shopping or on vacation with that money, you'll be much better off down the road by investing it!! 3- if you put it as a 07 contribution then if you are able to make the full 5000 contribution for 08, you are ahead of the game! then you have two years worth of contributions in instead of just one! and 4- now is a great time to get in the market- the market is pretty low. buying into a mutual fund now will most likely earn you good returns. i recommend doing a little research on mutual funds. american funds is a good place to start (i don't work for them, i work in finance tho)- they have some decent funds with low expense ratios. you are young so you definitely want to be IN the market (as opposed to just in CDs or something) but individual stocks are more risky with small amounts of money. it is important to get the money invested some how though, not just sitting in the money market earning like 1%.if you have any questions you can msg me- good luck!
mlen mlen 8 years
peachykeen19- start one now! it doesn't matter if you can't put in the full 4000, or if you even only put in a couple hundred, the sooner you start the better off you'll be. 1- you'll get in the habit of contributing, it'll be something you think about doing and you'll be more likely to put more aside in the future, 2- you aren't wasting that money on something else! i tend to take money from my year end bonus to fund my roth with, and i back date it, so i'll be funding my 2007 contribution today actually. while it would be a ton more fun to go shopping or on vacation with that money, you'll be much better off down the road by investing it!! 3- if you put it as a 07 contribution then if you are able to make the full 5000 contribution for 08, you are ahead of the game! then you have two years worth of contributions in instead of just one! and 4- now is a great time to get in the market- the market is pretty low. buying into a mutual fund now will most likely earn you good returns. i recommend doing a little research on mutual funds. american funds is a good place to start (i don't work for them, i work in finance tho)- they have some decent funds with low expense ratios. you are young so you definitely want to be IN the market (as opposed to just in CDs or something) but individual stocks are more risky with small amounts of money. it is important to get the money invested some how though, not just sitting in the money market earning like 1%. if you have any questions you can msg me- good luck!
onabanana onabanana 8 years
I'm not a pro, so don't take my word as gospel but I don't see the harm in opening one now. You don't have to make the maximum contribution for 2007 but you might like the option. Oh, and the market is so low it, it's got to go up at some point, might as well buy in when it's low.
i-am-elle i-am-elle 8 years
Ooh thanks for posting about this, Savvy! I've had my Roth IRA since I graduated from high school & I need to remember to fund it every month. I'm glad I can still do it for 2007. Woot!
PeachyKeen19 PeachyKeen19 8 years
I wanted to start a Roth IRA back when I first learned about them (17) and then got my first job (18) but ended up putting it off, which I regret. Now I'm 23 and the market is changing and I'm not sure what to do. Should I go to my back and start one now? Or can I wait after this deadline? I just paid of a student loan so I don't have much money in my account, but I can probably save a decent amount of money between now and this deadline if I keep working. Any advice? Should I start that Roth IRA now? Later?
onabanana onabanana 8 years
low fees not low feed. sorry.
onabanana onabanana 8 years
low fees not low feed. sorry.
onabanana onabanana 8 years
You can contribute $4,000 towards the 2007 IRA but for 2008 The IRA maximum contribution has gone up to $5,000. Oh and if any of you are teachers or work for Non-profits you might look into TIAACREFF They have low feed. I swear I don't work for them I just did a lot of research when I opened my IRA account. Oh! And Vanguard also offers lower fees for other retirement funds. I recommend diversifying your investments. I a currently investing more in international markets.
popgoestheworld popgoestheworld 8 years
I guess my motto for retirement savings is to not worry about this day to day jumping around of the market. It's such a long-term investment that as long as you aren't investing in individual stocks you'll probably do fine.
nola45 nola45 8 years
This is a great reminder! But then, where should we invest the money with the market going so crazy? Should we dollar-cost average over the year?
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