Roth IRA Contribution Deadline: Maximize Tax-Free Retirement Growth

You are required to make your yearly contributions by an established deadline for Roth IRAs in order to have them recorded as tax-exempt contributions. If you miss a contribution in the current year, you cannot simply add the deductions the following year because you may exceed the annual contribution limit.

Tax Deductions

The Roth option allows you to place post-tax dollars into an account that can grow tax free until you make withdrawals. Since you already paid taxes at the front-end of the account, you are not required to pay no taxes when you withdraw your money, as long as you are over 59-1/2. 

Contribution Limits

If you miss the deadline, you may not be able to add the funds into the next annual year. There is a contribution limit on the Roth IRA, and this limit is lower than with a traditional IRA. It may be as low as $5,000, depending on the year you are contributing. For example, if you were intending on contributing $4,000 this year, and $4,000 next year, but missed the deadline, you would only be able to contribute the maximum $5,000 next year.