Financial Answer Center
IRAs (Individual Retirement Accounts)
- A Tax-Free Way to Save: the Roth IRA
- The Traditional IRA
- Catch-Up Contributions
- Will My Contribution Be Deductible?
- The Traditional IRA vs. the Roth IRA
- What Type of Assets Can You Contribute to Your IRA?
- Setting up an IRA
- Investment Considerations for Your IRA
- When Is the Best Time to Contribute?
- Spousal IRAs
- Advantages and Disadvantages of IRA Accounts
- Rollovers to Your IRA
- Converting a Traditional IRA to a Roth IRA
- Roth IRA and 401(k)
- Choosing between the Roth IRA and Other Vehicles
- Roth IRA Conversions
When Is the Best Time to Contribute?
You can contribute to your IRA account anytime during the current year and as late as the due date of your individual income tax return, not including extensions. You can make the contribution all at once or dollar-cost–average your contributions, i.e., systematically invest a fixed dollar amount regularly.
SUGGESTION: If possible, make your IRA contribution as early as you can in the year. Missing out on 15½ months' earnings compounded over the next 20 or 30 years can make a big difference. If you can't make the full contribution on January 1, consider dollar-cost averaging.
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