The IRS has recently moved the federal tax filing deadline to May 17, and if that doesn’t get you excited, here’s something that will: The extension also allows you another month to make your 2020 Roth IRA contribution. The benefits of contributing to a Roth are quite valuable, as money invested in a Roth grows tax-free forever and stays tax-free when you withdraw it in retirement. For a variety of reasons, this may be the best time ever to contribute to a Roth. We’ll explore the “why” below.
Yes, the IRS has pushed back the tax deadline. Why does this matter? Instead of scrambling to get your tax documents together by April 15, you have a short reprieve. But perhaps more importantly, you have more time to complete your 2020 Roth contribution.
Keep in mind, this is your 2020 contribution we’re talking about. Typically, you have until April 15th of the following year to make your Roth contribution for the preceding year; for 2020, you’ll have an extra month.