Happy Tax Freedom Day! In case you weren’t aware, the average American will spend 99 days working to pay their 2010 tax bill. That makes today, April 9th, Tax Freedom Day. In reality, Tax Freedom Day varies from state to state, with Alaska being the earliest (March 26th) and Connecticut being the latest (April 27th).
And now for your homework…
As you’re no doubt aware, your income tax return is due next Thursday. That means you have just under a week left to fund an IRA for 2009. If you haven’t already done so, and if you scrape together enough money to make it happen, then please set aside some time this weekend to do it.
If you’re concerned about not being able to swing the contribution amount without tapping into your short-term savings, keep in mind that you can withdraw Roth IRA contributions without paying a penalty whenever, and for whatever reason, you want.
While withdrawing your contributions would negate the contribution in the first place, there’s a good chance that you’ll get those short-term savings rebuilt before anything bad happens, and you’ll then be one step ahead.
Speaking of contributions, here are some details on contribution limits:
If you’re not sure where or how to open an IRA, I would recommend that you start by checking out the following pages from Vanguard and/or Fidelity. I personally prefer Vanguard, but we also have some money with Fidelity and have had a good experience with them, as well.
That’s it. Go. Do it. And have a great weekend!