Generally, contributions must be made by the tax filing deadline. That means you have until April 18, 2016 to make your 2015 contribution. For example, on March 1st, 2016, you could contribute $10,000: $5,000 for 2015 and $5,000 for 2016.
Your IRA or Roth contribution is also limited by the amount of compensation income you earned. If you only made $2,000 last year, you could only contribute $2,000 for that year. And for higher income filers, if you are covered by your employer's retirement plan, you may not be able to deduct your IRA contribution.
If you are of modest means, don't forget there is an up-to-$1,000 retirement savings credit available. This comes directly off your tax bill and makes it easier to save. It applies if your single adjusted gross income is under $30,000, $45,000 if you are a head of household, or $60,000 if you are married filing jointly.
Retirement accounts represent an excellent planning opportunity to lower your tax bite either currently or over time. But remember, there are a number of important rules dealing with IRAs and Roth IRAs. And you can lose money if you do not invest wisely. This discussion only deals with the contribution limit. Be sure you are well-advised on the rules relating to retirement accounts and have the right plan before taking the plunge.
