Dan Kresh FPQP™
Since Roth IRA contributions are made with after tax dollars, there is no need to report them on your tax return.[i] This is another benefit of Roth over Traditional IRAs. Contributions to a Traditional IRA, even non-deductible ones, must be reported on your tax return[ii].
The deadline for IRA contributions is not the end of the calendar year. For contributions to a Roth or Traditional IRA, the deadline is the same as the tax filing deadline. So, for 2017 contributions the deadline is April 17, 2018[iii]. Though this deadline is for both Roth and Traditional IRAs, the fact that Traditional IRA contributions must be reported makes last minute contributions tricky if you filed your taxes early. Since you don’t need to report Roth contributions you can still make a contribution even if you have already filed your tax return early, without any further paperwork.
The takeaway is there’s still time to make a prior year contribution up until the tax deadline. You have about 15½ months to make a contribution for a calendar year, from January 1st through the tax filing deadline. This also means that if you didn’t make a prior year contribution, you can make two contributions between January 1st and the tax deadline (prior year and current year).
There’s no time like the present to invest in your future. You work hard for your money, we work hard so your money can work for you.
You should always consult a tax professional and though this piece contains some tax information it should not be considered tax advice.