April 16, 2021 5:37 AM newsfeedback@fool.com (Charlene Rhinehart, CPA)
Posted:
Updated:
April 17, 2021 6:55 AM
If you’re on a mission to generate more tax-free earnings during retirement, you don’t want to miss out on your annual Roth IRA (individual retirement account) contributions.
For those who qualify, a Roth IRA allows you to contribute money you’ve already paid taxes on and invest in assets that can grow your portfolio. Here’s the bonus: All of your earnings accumulate in your account tax-free. The more you contribute every year, the greater your chances are of earning more income during retirement.
Fortunately, there’s still time to contribute to your 2020 Roth IRA. The IRS has extended the tax-filing season to May 17, which gives you more time to achieve your 2020 contribution goals. Here are some tips to help you get to the finish line with ease.