4 IRA Contribution Rules

Here are 4 IRA contribution rules that may surprise you. Often during tax time client’s who haven’t contributed to their IRA earlier have questions about their options to contribute to their IRA for the current tax year.

1.     File first. Fund later.  You may file your return first and fund your 2023 IRA contribution later. In fact, you might be able to use your 2023 refund to fund your IRA, if you make your 2023 IRA contribution before April 15, 2024.

2.     Spousal contributions can help.  If your spouse has taxable earned income for the year, you can make a spousal IRA contribution based on your spouse’s compensation.

3.     No age limits for IRA contributions.  SECURE Act changed the rules. Now you can contribute to your IRA up to any age. You always could have contributed to a ROTH, but now you can contribute to either one, if you have earned income.

4.     No extension for your IRA contribution.  You can file an extension for your taxes, but not your IRA contribution. The deadline for your 2023 IRA contribution is April 15, 2024.