It is tax time. Don't you love it? I am guessing more than likely you do not love it. If you are like the majority of everyone else then you haven't even started filing your taxes. If you are also like many people you never contributed to your self directed IRA for 2013. Don't fret because as long as you really haven't filed your taxes yet you still have time contribute to your self directed IRA for 2013. Don't take all the time in the world though because time is running very thin.
When is my last day to contribute to my self directed IRA?
You can theoretically contribute to your self directed IRA and any IRA for that matter until April 15. But the issue with waiting until April 15 to actually contribute for the previous year is that is the same day your taxes are due and need to be filed. You need to remember that just because you have until April 15 to submit your contribution it doesn't mean that you should wait until then. Trust me trying to finalize your 2013 contribution for along with finishing your 2013 taxes all on the same day is NOT fun.
How can this be done
If you do or don't have a self directed IRA set up currently you can still take advantage of setting one up and investing in some of the other non-traditional investments that are available through a self directed account. One example of what you can do: Set up your self directed account and then contribute your money to your account. One smart thing to do is since you are taking the time to contribute to your IRA if you have the extra cash and have made enough in 2014 you might as well contribute for 2014 as well. If you contribute the general max contribution for 2013 ($5,500) and 2014 ($5,500) you will be adding $11,000 to your new or existing self directed IRA account. With that money you then can invest it into alternative investments like gold or other precious metals.
Maximize your retirement
It is so important to contribute to your retirement accounts in order to get the most out of your future retirement. If you are not contributing to your retirement accounts you in theory are losing valuable tax savings when you finally do retire. If you haven't seen how much time is a major factor in retirement savings. The earlier you start contributing to your retirement less you have to put into your retirement to get to a certain retirement account value. Likewise the later you start the more you you will have to contribute each year. It really does pay to contribute to your retirement accounts each year.
Feel free to contact us if you need any help contributing to your self directed IRA account.
Author: Nick Barker