Too Late to Open Roth IRA for 2013?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
xrw1
Posts: 71
Joined: Wed Aug 22, 2012 5:24 pm

Too Late to Open Roth IRA for 2013?

Post by xrw1 » Mon Apr 14, 2014 8:26 am

Good morning everyone!

My coworker just asked me if it was too late to open an account Roth IRA account with Vanguard and contribute to 2013.

I know the last day to contribute to 2013 Roth IRA is tomorrow (April 15th) but what is the latest day to open a Roth IRA account and contribute to 2013?


Thank you

User avatar
JamesSFO
Posts: 2920
Joined: Thu Apr 26, 2012 10:16 pm

Re: Too Late to Open Roth IRA for 2013?

Post by JamesSFO » Mon Apr 14, 2014 8:34 am

I believe: Tomorrow as well, open it now.

User avatar
BL
Posts: 7465
Joined: Sun Mar 01, 2009 2:28 pm

Re: Too Late to Open Roth IRA for 2013?

Post by BL » Mon Apr 14, 2014 8:37 am

You can always go down to the bank and open one. Savings or CD would work.

xrw1
Posts: 71
Joined: Wed Aug 22, 2012 5:24 pm

Re: Too Late to Open Roth IRA for 2013?

Post by xrw1 » Mon Apr 14, 2014 8:45 am

I told her to open it now as well, but she don't have any of her banking info so she will have to do it later tonight.

I guess as long as vanguard lets her open her account and set up banking for 2013 tonight it will be all good

retiredjg
Posts: 31149
Joined: Thu Jan 10, 2008 12:56 pm

Re: Too Late to Open Roth IRA for 2013?

Post by retiredjg » Mon Apr 14, 2014 10:01 am

I'm not sure, but is opening the account enough? I'm thinking you have to actually put the money in it. But I'm not sure.

If so, she could open it at a local bank if she has the money and then move it later....

DSInvestor
Posts: 10624
Joined: Sat Oct 04, 2008 11:42 am

Re: Too Late to Open Roth IRA for 2013?

Post by DSInvestor » Mon Apr 14, 2014 10:31 am

She may be able to open an IRA online at vanguard.com today April 14, give them her bank routing and acct numbers to pull the 2013 contribution. If she doesn't know what to invest in, just put it all in a money market mutual fund like Prime Money Market. She should be aware that the contribution screens where she enters the amount of contribution will have two fields one for 2013 contribution amount and another for 2014 contribution amount. Make sure she enters the 2013 contribution in the correct field. After April 15, 2015, the screens will change and only allow 2014 contributions.

Does she know her bank account number or have a check on her? The check will show routing and acct number. If no check, but she knows her bank account number, she can call her bank branch to ask for the routing number. Not sure if bank will give bank account number to her over the phone even if she authenticates herself. I know they will give the routing number over the phone.

amitb00
Posts: 334
Joined: Sun Jan 01, 2012 9:04 am

Re: Too Late to Open Roth IRA for 2013?

Post by amitb00 » Mon Apr 14, 2014 12:01 pm

For folks who mail in a check, does the envelope needs to be postmarked by 15-Apr or does it need to be received by 15-Apr?

tecmage
Posts: 108
Joined: Mon Apr 14, 2014 9:26 am

Re: Too Late to Open Roth IRA for 2013?

Post by tecmage » Mon Apr 14, 2014 12:17 pm

DSInvestor wrote:She may be able to open an IRA online at vanguard.com today April 14, give them her bank routing and acct numbers to pull the 2013 contribution.



I did just this today, so it's not too late.

DSInvestor
Posts: 10624
Joined: Sat Oct 04, 2008 11:42 am

Re: Too Late to Open Roth IRA for 2013?

Post by DSInvestor » Mon Apr 14, 2014 12:27 pm

amitb00 wrote:For folks who mail in a check, does the envelope needs to be postmarked by 15-Apr or does it need to be received by 15-Apr?

At Vanguard, they will accept 2013 contribution if postmarked by April 13, 2014. Here's something from Vanguard on upcoming tax deadlines:
https://personal.vanguard.com/us/insigh ... Channel=AN
To ensure your IRA contribution gets applied to the 2013 tax year, please make all online contributions no later than 11:59 p.m., Eastern time, on Tuesday, April 15. If you're mailing your IRA contribution, make sure the letter is postmarked on or before Tuesday, April 15.

If you file your federal tax return (or request an extension) by April 15, 2014, you'll have until October 15, 2014 to remove any excess 2013 contributions from a retirement account or to recharacterize 2013 contributions to a Roth IRA.

Alan S.
Posts: 7082
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: Too Late to Open Roth IRA for 2013?

Post by Alan S. » Mon Apr 14, 2014 2:00 pm

amitb00 wrote:For folks who mail in a check, does the envelope needs to be postmarked by 15-Apr or does it need to be received by 15-Apr?


The postmark rules apply for federal tax purposes, but an IRA custodian does not have to recognize them. VG does, but that's their choice and most custodians probably do, at least those that are seeking deposits.

Post Reply