Skip to main content

One More Week

You’re running out of time. Next Thursday is a very important day, and I’m not talking about me turning another year older, even though that’s exactly what will happen. This year I’m not even talking about filing personal (not business) income taxes since that deadline has been extended until May 17, 2021. I’m talking about the ability to contribute to your Roth IRA for the 2020 calendar year. Allow me to explain.

Disclaimer: I’m not telling you to run right out and do this if you are not in a position to do so. You should NOT put money away for retirement if you’re struggling to make a house or rent payment. I implore you to be responsible with your finances, and I’ve written many posts outlining how to do this in the fairly recent past. I invite you to peruse my blog library.

A Roth IRA is one of a few GREAT places to put money away for retirement. The best thing about this type of retirement account is that the money grows TAX FREE which means the government will never be able to take any of the growth away from you. Note that there are restrictions on contributions which I won’t go into detail about now. But, if you are in a position to contribute to a Roth, I encourage you to speak to a tax professional to find out IF you can for the year 2020 and HOW MUCH.

My urgency today is to remind you that you have until April 15 of any given year to contribute money to a Roth IRA for the previous year. Some may ask why one doesn’t just contribute during the actual year, and the simple answer is that sometimes one doesn’t know IF or HOW MUCH one CAN contribute until one’s tax return is filed. I am a prime example of that. I am self-employed and am over a certain age threshold so I need to file my taxes before I know how much I can put away for the future.

I’m just letting you know that if you are in the same position as me and want to put money away to grow TAX FREE (and who doesn’t?) you’d better hurry. 

Comments

Post a Comment

Popular posts from this blog

Sunny and 75

While the Intermountain West has had slightly cooler climate than is typical for this time of year, I just know gorgeous weather is right around the corner. Today I wore flip flops in the rain just to make my point. And wearing open-toed shoes without socks is just one of the wonderful things you can do when it’s nice outside! I don’t know about you, but thinking about warm-weather activities makes me want to play hooky from work and play instead. But because I am an accountable adult (most days, anyway), I will NOT forsake my grown-up responsibilities (as bad as I might want to) in favor of longer days and spring and summer fun. I can work before I play. And so can you. Here is a short list of things you should check NOW before the weather gets too hot: THE CHIMNEY – climb on your roof (if it’s safe) or use binoculars to check the exterior, hire a professional for the interior cleaning GUTTERS AND DOWNSPOUTS – make sure they’re clean and make repairs as needed THE ROOF – it’s mu
Post a Comment
Read more

Who’s the Boss?

If you know me at all, then you know I love Dave Ramsey. In fact, I not only attended a Dave Ramsey affair when it once came to an event center near me, but when I went through Tennessee on a road trip, I hunted him down and visited his studio. I have a picture to prove it (well, it’s somewhere). I always listened to Dave when his show was featured from 1:00 to 4:00 pm on my local talk radio station. One of the things he said frequently (something that he actually borrowed from somebody else–John C. Maxwell) was, “A budget is telling your money where to go instead of wondering where it went.” If you are getting a tax “refund” this year, I will first invite you to review last week's blog post and the three links to previous blog posts. I would then encourage you to plan for that “refund” money, and I don’t mean blow it as most Americans will do. Be smart. Use it to pay off some debt if you, as most Americans do, have some. If not, save it appropriately.  We've discussed deb
Post a Comment
Read more

Greener Pastures

Those of you who have been following me for some time now know I am a warm-weather person. Spring is one of my favorite times of the year. I COME ALIVE when Daylight Saving Time starts. As far as I’m concerned, LIGHT IS LIFE. And that proclamation is a perfect segue into today’s topic. As the days get longer and warmer, most venture outside a little more and hibernate less. So it’s the perfect time to adjust our schedules and homes that can help save the planet and some of our hard-earned money. How? Well, there are lots of little things you can do that, added up, can make a huge difference. Switch out your regular light bulbs for LEDs. If you plan to buy a new appliance, purchase one with the ENERGY STAR seal and recycle your old one. Insulate your doors and windows. Save rainwater to water your landscape in the drier days ahead. Use the sun to dry your laundry by hanging it on a clothesline. Want more ideas? Google is LOADED with suggestions! Get the whole family involved and m
Post a Comment
Read more