Question of the Week: Is It Too Late To Contribute To My IRA

I like romantic comedies. It’s my favorite genre. Show me a 90 minute film where guy gets girl at the end, I’m a happy guy. Comedies as well. The more slapstick the better. (Naked Gun, Airplane, Love Actually, Serendipity…)

What I don’t like are films with a ton of violence but, back in 1990, I did see Good Fellas with Robert Di Nero and Joe Pesci. One line that is forever burned into my memory takes place in one of the numerous murder scenes. I forget the characters but one guy says to a soon-to-be deceased character - You’ll be late for your own bleeping funeral. (Profanity withdrawn to protect innocent readers.)

It’s quite uplifting if you must know and I always think of this line when clients wait until the very last minute then ask if they can still make a IRA contribution after the end of the calendar year. (In other words, is 12/31/16 the last day to make a 2016 contribution?)

It’s not because one fabulous quirk in the IRA laws is that you have 15 months to make a contribution for the current tax year. In 2016, for instance, you can make a contribution any time from January 1, 2016 to April 17, 2017 (the tax filing deadline).

So my guidance here is to leave a few minutes early to beat the traffic and take advantage of this favorable nuance of the tax code and make your IRA contribution before it’s too late!

Required disclosures: Investment advisory services offered through Brookstone Capital Management, LLC (BCM), a registered investment advisor. BCM and (Strataxa Retirement Advisors, LLC) are independent of each other. Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents.

Information provided is not intended as tax or legal advice, and should not be relied on as such. You are encouraged to seek tax or legal advice from an independent professional