In fact, you still have time left before the April 15th tax deadline for retirement savings in 2012. You’re able to contribute to a traditional or a Roth Individual Retirement Account (IRA) for 2012 provided you open the IRA before the tax filing deadline. Even if you’re unable to make the maximum allowable contribution of $5,000 any amount you start saving will help you in the long run.
You shouldn’t stop with last year, however. Once you have an IRA established, you should begin contributing for this year. The sooner you are able to save for the 2013 tax year, the more time that money will have to accumulate interest. You should also continue to save to your IRA, and to save as to it as possible. Also, if you work at a company that offers a 401(k) profit-sharing plan, take advantage of that and start contributing today. Any contributions you make to a 401(k) are automatically deducted from your paycheck, and most employers match employee contributions (in varying degrees; some employers offer a 100% match).
Whatever you decide to save your money in, whether it’s a traditional IRA, a Roth IRA, a 401(k), or other retirement savings program, it truly is never too late to start. In fact, the sooner you start, the sooner you’ll benefit from having that money waiting for your retirement.