Transcript:
Hello, everyone, I'm Derek Merkler, fiduciary financial advisor and author here at militaryFA.com with your Tip of the Week. This week I'll be explaining prior year IRA contributions. As I record this video in early 2019, it is still possible to make contributions to your IRA while applying those contributions to the 2018 limitations. The key factor here though, is that you can only make 2018 contributions up to this year's tax return filing deadline in April. So if you've contributed less than $5,500, to your IRA last year, or 6500, if you're over age 50, you still have time to make those 2018 contributions.
This applies to traditional IRAs, Roth IRAs, and your spouse's IRA if you're married. Also, in case you haven't heard, the 2019 contribution limit for IRAs is now $6,000. Again, with the extra 1000 for individuals over 50 years old. If you choose to make a 2018 contribution, make sure that you specify that fact with your financial institution so that they don't count it as a 2019 contribution by default. If you have questions on this or any other financial topic, send me a message using the info posted in the credits. Until next time, and the back that strong you load 16 by the end of the day.