Make 2010 contributions for SEPs, Roths in 2011

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I am obsessed with you saving money. I want you to be in charge of your own wallet and your own life. The more you save, the more control you have.

You may have intended to make contributions to an IRA or Roth account last year and never got around to it. But it’s not too late. Now you can make contributions in 2011 before you file your taxes and have it count toward last year’s contribution.

For my radio show, I have my own company and each year I do a simplified employee pension plan (SEP). So I make my SEP contribution for 2010 in 2011 and that’s perfectly acceptable. It’s not playing games with the tax code or gaming the system in any way.

If you’re self-employed and last year was better than you thought, you can now put money into a SEP from zero dollars up to to $49,000 for 2010. You can also still put up to $5,000 into a Roth. (If you’re over 50, you can do a special catch-up Roth contribution of $6,000.)

So how are you doing saving money for your future? If that’s a tough question that makes you uncomfortable, start the process of saving so you can get comfortable. Maybe you don’t have the money right now. That fine. I just want you to resolve to be a saver in 2011 and commit to putting money aside for your long-term future.



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