10 Myths About IRA Contributions
As the April 15 deadline draws near, we clear up some key points of confusion for would-be contributors.
Editor's note: A version of this article was initially published on March 26, 2018. It is part of the 2020 Tax and IRA Guide.
Many investors have heard the admonitions about why they should contribute to an IRA as soon as they possibly can: for the 2019 tax year, that would have been Jan. 1, 2019. And yet many investors wait until the last minute--their tax filing deadlines--to make a contribution for the year prior. Vanguard's data has shown that more than twice as many IRA contributions come in in April of the year following the tax year than in January of the current year. Within the next few months, investors will be rushing in their contributions for 2019, even though they could have done so more than a year earlier.