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BullredsRus
LSU Fan
Baton Rouge
Member since Aug 2007
359 posts

Last day to contribute to Roth IRA


I think you can make your 2012 contribution by 4-15-13 for an IRA right? Is it the same for a Roth?






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LSUcam
LSU Fan
Destin FL
Member since Dec 2011
381 posts

re: Last day to contribute to Roth IRA


Same as a Roth. I was always under the impression that it was the day before 4/15. If you are so strapped for cash that a few days would make a huge difference, maybe you need to build an emergency fund up before investing anyways?


This post was edited on 1/24 at 2:56 pm


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TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
21675 posts

re: Last day to contribute to Roth IRA


Unless it has changed the Roth was 4/15, one year I used my tax refund to fund my roth and credited to the previous year.





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Hammond Tiger Fan
Arizona State Fan
Hammond
Member since Oct 2007
11587 posts

re: Last day to contribute to Roth IRA


quote:

If you are so strapped for cash that a few days would make a huge difference, maybe you need to build an emergency fund up before investing anyways?


From my understanding, if hard times come about you can pull out the money you put in penalty free less any realized gains.

I'm keeping a small emergency fund on hand. About half of what I actually need and maxing out both my wife and I Roth IRAs. The way I see it is if I ever need to grab that money, I'm able to. Placing it inside a Roth gives it more of an opportunity to grow versus having it sit there in a money market or savings account.






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LSUcam
LSU Fan
Destin FL
Member since Dec 2011
381 posts

re: Last day to contribute to Roth IRA


quote:

you can pull out the money you put in penalty free less any realized gains


Your absolutely right. Any contributions made can be withdrawn, penalty free, as they have already been taxed. However, if you have the cash invested, and you paid sales charges or commissions, then you aren't recognizing the benefit of the investment if you don't hold them for at least a mid-term time horizon.

quote:

I'm keeping a small emergency fund on hand


If you think you consistently have 3-5 months expenses in a safe, liquid position such as checking/savings, you should feel safe to invest any excess cash.

quote:

Placing it inside a Roth gives it more of an opportunity to grow


True. But try to think of this as only in the mid-to-long term (atleast 3 years). Mind you, there are mutual funds that you can hold that are beneficial for less than 3 years, just make sure you know you aren't paying front-end loads, or back-end CDSC fees.






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Hammond Tiger Fan
Arizona State Fan
Hammond
Member since Oct 2007
11587 posts

re: Last day to contribute to Roth IRA


quote:

LSUcam


Thanks for the advice and everything I'm doing is in line with what you are saying. Having someone else agree with me just gives me more confidence that I'm doing things the right way






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LSUcam
LSU Fan
Destin FL
Member since Dec 2011
381 posts

re: Last day to contribute to Roth IRA


I know very astute, financially literate folks who reach out to others to confirm logic. It's human nature. No problem!





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