April 15 is not just the deadline to file your 2014 income taxes but also the last day you can contribute to your individual retirement account. Any contribution made before April 15 will count towards your 2014 maximum of $5,500. So if you haven’t maxed out your IRA contribution for 2014, or if you haven’t opened an IRA account at all, you still have a few months to so and a little extra now could make all the difference in the long run.
So essentially the IRS allows us to make contributions from Jan. 1, 2014 and April 15, 2015 and still count towards the 2014 year. Time is the most powerful tool in investing and even a little now can make a huge difference down the line. For example, a 30 year old investor who contributes $5,500 annually will expect to have $1.03 million in their account by the time they turn 65. On the other hand if that investor really buckled down and contributed $11,000 towards a new IRA this year their account would be at $1.11 million, an additional $80,000.
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