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IRA time!

March 30, 2011

As the annual tax-filing deadline nears, folks tend to pay extra attention to their individual retirement accounts.

Part of the reason is that contributing to an IRA is the only thing you can do now that still applies to the tax year that ended on Dec. 31.

If you haven't maxed out your IRA contribution for 2010 — that's $5,000 for an IRA, both traditional and Roth, or $6,000 (again for both types of retirement accounts) if you're age 50 or older — you can put money into the account as late as April 18 this filing season.

Traditional IRA owners get the added advantage of a potential tax deduction for their contribution.

Roth IRA owners, while unable to deduct their contributions, still might want to max out for the 2010 tax year before contributing for 2011. Taking full contribution advantage every tax year helps build your nest egg more quickly.

Things to consider when contributing to a traditional IRA or a Roth IRA were tax tips posted earlier this week.

Today's Tax Tip comes from the opposite direction. It looks at when you need to tap an IRA early, specifically how you can take some money out without paying the early distribution penalty.

If you missed any of this week's tax tips or just want to review previous pieces of filing season advice, check out the collection of March tax tips. At the end of that list, you'll find links to the January and February tips.

And on Friday, April 1, a new tax tips list will start, with a tip a day posted through the April 18 filing due date.

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Credits/Deductions
Disasters
Family
Filing and Paying Taxes
Politics/Laws
Refunds
State Taxes
Tax Brackets/Inflation
Tax Tips
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