The tax deadline has extended from April 15, 2021 to May 17, 2021, and with it comes an extension for making contributions to your Individual Retirement Account (IRA). According to the Internal Revenue Service, contributions amounts of $6,000 can be made into your Traditional IRA or Roth IRA (and if you’re over 50 years old, you can make an additional “catch-up” contribution of $1,000 for a total of $7,000.) Note: Get those funds contributed soon, and don’t wait until the last minute… Many custodian institutions are east-coast based and have an early close time of 4pm EST on May 17th.
Some IRA Stats…
- More than one-third of households owned an IRA in 2019 (43% made contributions to traditional IRAs; 44% to Roth IRAs, and 13% to more than one kind of IRA) (Source: Investopedia)
- Nearly 60% of Americans withdrew or borrowed money from an IRA or 401(k) during the pandemic, and nearly 66% used those retirement savings to cover basic living expenses (Source: Kiplinger)
- The SECURE Act of 2020 was the first year allowing earned income contributions to traditional IRAs past the age of 70 1/2 (Source: AARP)
- For self-employed business owners, 2021 allows you to contribute 25% of your net income into a SEP IRA (not to exceed the max contribution limit of $58,000) (Source: Kiplinger)
If you have questions about your financial situation, contact IMS Capital Management for a complimentary review. (503) 788-4200