April is historically the month which marks the deadline for citizens of the USA to file their tax returns, and 2023 is no different in this regard.
Whilst there has been a minor delay until Tuesday, April 18, due to holidays and weekends falling so closely together, the deadline has been made abundantly clear to people.
Of course, there are many aspects to tax returns, with individual refunds and payments all requiring attention, however there are also the small matter of IRAs.
In the USA, IRAs allow people to put money away and save for their retirement, in a similar manner to the pension scheme utilized in the United Kingdom.
There are two main types of IRA: a traditional IRA and a Roth IRA.
What are the differences between a traditional IRA and a Roth IRA?
If you have taxable compensation, a traditional IRA allows you – or a spouse if filing jointly – to contribute to a fund.
Prior to 2020, anyone under the age of 70.5 years was unable to put money into the IRA.
A Roth IRA is slightly different in the fact that you can contribute to it at any age, provided that your modified adjusted gross income falls below certain designated amounts.
Contributions are tax deductible in a traditional IRA, whereas they aren’t in a Roth IRA.
You are eligible to withdraw money from either fund at any time.
What is the 2023 deadline for contributing to Roth IRAs in 2023?
With regards to the deadline to contribute to Roth IRAs for the fiscal year of 2022, the expiration point is the exact same as that of regular tax return filing.
In 2023 this falls on April 18, so US citizens looking to make Roth IRA contributions for 2022 have just a few more days, until the deadline on Tuesday.
