Maybe, maybe not. Generally speaking, the Internal Revenue Service (IRS) allows you to make your Individual Retirement Account (IRA) contribution for a particular tax year up until April 15 of the following year. This rule applies to both traditional IRAs and Roth IRAs, giving you some flexibility in terms of the timing of your annual IRA contribution. You can contribute a total of $6,000 to all the IRAs you own in 2022 (unchanged from 2021). In addition, if you're age 50 or older, you can make an extra "catch-up" contribution of $1,000 a year in 2022.
Note that you can make your annual IRA contribution in a series of payments rather than in one lump sum. For example, let's say you want to contribute the maximum amount in your IRA for 2022. You can either make a lump-sum contribution of $6,000, or you can set up a savings plan whereby you contribute a fixed amount each month in your IRA. Because you're allowed to spread your 2022 IRA contribution over a 15½-month period (January 1, 2022 through April 15, 2023), you can contribute as little as $375 per month and still end up contributing the full $6,000 (provided the final contribution is made before April 15, 2023).
To discuss an Individual Retirement Account, reach out to the knowledgeable team at First Bank Wealth Management.
IMPORTANT DISCLOSURES
Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual's personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice. Prepared by Broadridge Advisor Solutions Copyright 2023.
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