Help me understand IRA max out

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anthonypals
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Help me understand IRA max out

Post by anthonypals »

I understand you can contribute up to $6k to max out your IRA, but is that yearly from Jan 1st to Jan 1st, or Jan 1st to tax day in April so technically it’s 15 months to max out not 12?
Silk McCue
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Re: Help me understand IRA max out

Post by Silk McCue »

Up to tax filing day for the prior calendar year starting no sooner than January 1 of the associated calendar year. For 2021 that is Jan 1st 2021 through tax day in 2022.

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RickBoglehead
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Re: Help me understand IRA max out

Post by RickBoglehead »

From Jan 1 to the filing date next April.
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samsoes
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Re: Help me understand IRA max out

Post by samsoes »

It's for the calendar year, 1/1 - 12/31. IRA contributions for the prior calendar year can be made up to 4/15 of the new year. Of course, you will need earned income during the designated calendar year.

After 1/1 and before 4/15, it is always advisable to make the contribution to the prior year if space remains on the prior year. (Space meaning the 6000 or 7000 you are allowed to contribute per year.) This allows you to make an additional 6000/7000 contribution toward the new year.
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Eagle33
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Re: Help me understand IRA max out

Post by Eagle33 »

samsoes wrote: Tue Jul 20, 2021 6:39 pm It's for the calendar year, 1/1 - 12/31. IRA contributions for the prior calendar year can be made up to 4/15 of the new year. Of course, you will need earned income during the designated calendar year.

After 1/1 and before 4/15, it is always advisable to make the contribution to the prior year if space remains on the prior year. (Space meaning the 6000 or 7000 you are allowed to contribute per year.) This allows you to make an additional 6000/7000 contribution toward the new year.
It is allowed to contribute your $6k($7k) into your IRA up to 4/15/22 for tax year 2021. Then it it also possible to contribute another $6k($7k) into your IRA during 2022 for tax year 2022. So it is allowed to contribute a total of $12k($14k) in a single calendar year, just that half of it has to be designated for the previous tax year.
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