Can i put money in an IRA now to reduce taxable income for 2006?

Answer 1

Yes as long as you make the contribution before April 15th. And make sure it's a Traditional IRA, not a Roth. Roth IRA's aren't tax deductible but you can withdraw the money tax free.

Answer 2

If you meet the requirements for making deductible contributions to a traditional IRA for 2006, then you can still do so up until the due date of 2006 returns. April 17.

Answer 3

If your income is below the limit for your filing status, then you can still make 2006 constributions to a regular/traditional IRA to reduce your 2006 federal income tax liability. You have until April 15th to make 2006 contributions.

Answer 4

if you make a contribution to a traditional IRA, you may or may not receive a tax deduction for it, depending on your income, filing status, whether or not you're already enrolled in an employer sponsored retirement plan, etc.

if you file single and made under $50,000, then you would get the full deduction of $4,000. you can make a contribution up to $4,000 ($5,000 if over age 50).

you have up until the due date of your tax return (including extensions!) to make a IRA contribution for 2006.

Answer 5

I don't think so. I believe that any money that you place in an IRA after 12/31 reduces taxable income for the current year.

Answer 6

Roth IRA is not deductible but you can get richer using it in the long run because it's tax free growth and tax free withdrawals at retirement.

Answer 7

Why not put the money into a short term money bond with an insurance company? As long as you don't touch it for 3 months, you will get a good interest on it then have money working for you before having to pay taxes.