roth ira

We have filed our return and received our refund. We both had sufficient income to open roth iras for 2020. Is there any reason we may not do that, so long as we meet the May 17 deadline?

posted

Yes. But because it's a ROTH IRA, there's really no need to amend the 2020 return since ROTH contributions are included in your taxable income anyway. The only caveat is, the contribution must be made with 2020 earnings if you want it to count as a 2020 contributions. Your tax refund of course, is from your 2020 earnings.

Simple but unofficial explanation: https://www.investopedia.com/can-you-fund-a-roth-ira-after-filing-taxes-4770667