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3 Funds for IRA Contribution Season

Our analysts suggest a total stock market index fund, a foreign stock fund, and a TIPS bond fund for investors' portfolios.

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Christine Benz: Hi, I'm Christine Benz for Morningstar.com. The first part of the year is IRA season because you have until your tax filing deadline, April 17 in 2018, to make an IRA contribution for the previous year. Doing so is a good way to accumulate additional tax-sheltered savings. The contribution limit for the 2017 tax year is the same as it was in years past: $5,500 if you are under age 50 and $6,500 if you are over 50.

If you have a time horizon of at least 10 years and you are looking for a core long-term holding that you will add to in the years ahead, it's hard to go wrong with a very inexpensive total stock market index fund or exchange-traded fund. Such funds don't require much oversight and have historically generated competitive returns relative to higher-cost actively managed funds.

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