2009 is quickly coming to a close and 2010 will be here before we know it, but it’s not too late to make contributions to your traditional IRA. Although, it’s not as attractive as the Roth IRA (in regards to tax free money), the traditional IRA still has its place for those looking to get a tax deduction and boost your retirement nest egg. Especially those that need a tax deduction at the last minute. The only downside with traditional IRA’s is that you don’t always get a tax deduction for making a contribution. The rules can be complicated and it all depends on your income limits and whether you have access to another retirement plan (such as a 401k).
As a refresher, you are allowed to contribute $5,000 to a traditional IRA, and an additional $1,000 if you are over the age of 50 with the catch up provision. If you haven’t funded one, don’t worry…..it’s not too late. You have until April 15th of next year to make the contribution for this year. That’s for all you procrastinators out there.
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