Complete Finance Blog

Opening Roth IRA account may seem difficult, when it comes to calculating MAGI. After this initial hurdle is crossed, one may find it even more difficult to maintain this account. There are a list of important dates that should be prioritized for smooth operation of retirement savings account. Typically, the important date is January 1st for making contributions to their IRA account, be it traditional or Roth type, the last date to make this contribution for previous year is April 15th. That is, the year’s contribution starts from January of next year. If a person is not eligible to receive distributions they need not worry about contribution until January the next year. The dates and their significance are listed on roth-ira.org.

When there is a scenario where in one has to convert traditional IRA to Roth IRA then, proposal for conversion is entertained between Oct 17th to Dec 31st. RMD needs to be taken after April 1st. One may have to designate proper beneficiaries for IRA accounts latest by September 30th, if the account holder passes away in previous year. By October 17th one should have completed any tasks with re-characterizing IRA contributions for previous year and also complete corrective distribution.

A beneficiary should be collecting death distributions, for which Dec 31st is the last date. If one has opened Roth IRA account recently and is well ahead of 50 years, they need not worry about other dates except January or April if conversion is on the cards. If a person has completed 70 years of age, Roth IRA does not have forced distribution which makes it convenient to maintain unless one depends on this distribution funds for their financial needs. Distributions for previous year are completed by Dec 31st of current year and requests for distributions should be submitted before April 1st. Beneficiaries should keep tabs during September, October and December initially, along with January deadline date.

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