Don’t Make These IRA Contribution Mistakes

By Brendan Hughes0 Comments

It’s still possible to make contributions to your self-directed IRA for 2015 – you have until the tax-filing deadline, which is April 18 this year. According to Christine Benz of Moringstar.com, investors shouldn’t wait until the last minute to contribute to an IRA, because they could be missing out on potential returns. In her article, Last-Minute IRA Contributors: 10 Mistakes to Avoid,  Benz lists IRA contribution best-practices that could benefit investors in the future.

A few of the suggestions listed are fairly straightforward, such as making sure to make the correct type of contribution or making a contribution and not investing it, but instead leaving it in a cash account. The article does touch on a few more advanced topics including:
  • Not forgetting about spousal contributions, if you qualify
  • Knowing the rules about Required Minimum Distributions
  • Deciding whether to complete a Roth conversion at the same time you make a contribution
If you haven’t made a contribution to your self-directed IRA yet (or if you still need to open your self-directed IRA), please contact us soon. The tax-filing deadline is approaching fast.