If you haven't contributed funds to an Individual Retirement Arrangement (IRA) for tax year 2004, or if you've put in less than the maximum...

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If you haven’t contributed funds to an Individual Retirement Arrangement (IRA) for tax year 2004, or if you’ve put in less than the maximum allowed, you still have time to do so.

You can contribute to either a traditional or Roth IRA until the April 15, 2005, due date for filing your tax return for 2004, not including extensions.

Be sure to tell the IRA trustee that the contribution is for 2004. Otherwise, the trustee may report the contribution as being for 2005, when they get your funds.

Generally, you can contribute up to $3,000 of your earnings for 2004 or up to $3,500 if you are age 50 or older in 2004. You can fund a traditional IRA, a Roth IRA (if you qualify), or both, but your total contributions cannot be more than these amounts.

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You may be able to take a tax deduction for the contributions to a traditional IRA, depending on whether you — or your spouse, if filing jointly — are covered by an employer’s pension plan and how much total income you have.

You cannot deduct Roth IRA contributions, but the earnings on a Roth IRA may be tax-free if you meet the conditions for a qualified distribution. You can file your tax return claiming a traditional IRA deduction before the contribution is actually made.

However, the contribution must be made by the due date of your return, not including extensions. If you report a contribution to a traditional IRA on your return but fail to contribute by the deadline, you must file an amended tax return by using Form 1040X, Amended U.S. Individual Income Tax Return. You must add the amount you deducted to your income on the amended return and pay the additional tax accordingly.

Publication 590, Individual Retirement Arrangements (IRAs), has more information.

Download Publication 590 at www.irs.gov or order it by calling toll free 800-TAX-FORM (800-829-3676).

— Internal Revenue Service

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