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Issue Number: IRS Tax
Taxpayers Have Extra Time to Make a
Contribution to Their IRA This Year
This year, you have a few extra days to make contributions
to your traditional Individual Retirement Arrangements. Thatís because
Emancipation Day, a legal holiday in the District of Columbia, will be
observed on Friday, April 15, 2011, which moves the due date for filing
your tax return and making contributions to your 2010 IRA to Monday, April
Here are the top 10 things the Internal Revenue Service wants you to
know about setting aside retirement money in an IRA.
- You may be able to deduct some or all of your contributions to your
IRA. You may also be eligible for the Savers Credit formally known as
the Retirement Savings Contributions Credit.
- Contributions can be made to your traditional IRA at any time during
the year or by the due date for filing your return for that year, not
including extensions. For most people, this means contributions for 2010
must be made by April 18, 2011. Additionally, if you make a contribution
between Jan. 1 and April 18, you should designate the year targeted for
- The funds in your IRA are generally not taxed until you receive
distributions from that IRA.
- Use the worksheets in the instructions for either Form 1040A or Form
1040 to figure your deduction for IRA contributions.
- For 2010, the most that can be contributed to your traditional IRA
is generally the smaller of the following amounts: $5,000 or $6,000 for
taxpayers who were 50 or older at the end of 2010 or the amount of your
taxable compensation for the year.
- Use Form 8880, Credit for Qualified Retirement Savings
Contributions, to determine whether you are also eligible for a tax
credit equal to a percentage of your contribution.
- You must use either Form 1040A or Form 1040 to claim the Credit for
Qualified Retirement Savings Contributions or if you deduct an IRA
- You must be under age 70 1/2 at the end of the tax year in order to
contribute to a traditional IRA.
- You must have taxable compensation, such as wages, salaries,
commissions, tips, bonuses, or net income from self-employment to
contribute to an IRA. If you file a joint return, generally only one of
you needs to have taxable compensation. However, see Spousal IRA Limits
in IRS Publication 590, Individual Retirement Arrangements for
- Refer to IRS Publication 590, for more information on contributing
to your IRA account.
Both Form 8880 and Publication 590 can be downloaded on this website or
ordered by calling 800-TAX-FORM (800-829-3676).
590, Individual Retirement Arrangements (IRAs)
8880, Credit for Qualified Retirement Savings Contributions
April 18th Tax Deadline: English
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