IRA prepay contirbution
Can you prepay your IRA contribuitons. My client is ready to pay 2012 and wants to know if she can pay for 2013 in 2012? If so, can she pay additional years in advance?
Can you prepay your IRA contribuitons. My client is ready to pay 2012 and wants to know if she can pay for 2013 in 2012? If so, can she pay additional years in advance?
Permalink Submitted by Alan Spross on Thu, 2012-11-08 17:21
No, an IRA contribution cannot be made prior to January 2nd of the year the contribution is FOR. But on the other end, you can make a prior year contribution up to 4/15 of the following year.
If you show your IRA contribution is for a future year, the IRA custodian would either not accept it or they might assign it to the current year. If they accept it for the current year, you will have an excess IRA contribution for the current year if you do not qualify for additional contributions for the current year.