Can we open a Roth IRA after 2017 1040 is filed?

[nancy8]

We have no Roth IRA now. If I file our 2017 - 1040 now, can we open a new Roth IRA later, before April 17th Tax deadline?

[MichaelDC · Accepted solution]

Yes. You can absolutely fund a Roth IRA, as long as your contribution is sent in before the official tax deadline. For the 2017 tax year, for example, that means all contributions made before April 18. 2018,  can go toward 2017’s Roth IRA contribution limit.

A Roth IRA is an after-tax investment. The money sitting in your bank account that you’re about to invest has already had taxes taken out of it. The government has received its cut, and there is no need to report the contributions on your income tax filing. You won’t receive a tax break for contributing, so the government doesn’t need to see it on your tax forms.

Please feel free to post any additional details or questions in the comment section.