April 15th has always meant tax filing day for all of us. But it also is the deadline for making contributions to last year's Roth IRA. Unlike the tax deadline, it cannot be extended.

Roth IRA's came into existence about four years ago. They have proven very popular. The annual limit has always been $2,000. Contributions can be made for the 2001 tax return up until April 15, 2002. Even though this contribution does not get deducted on the tax return, it still is subject to the same deadlines as regular IRA's.

As those of you who have read my articles before know, I am a big believer in the benefits of Roth IRA's. The earnings are tax free, not just deferred. They allow more flexibility at retirement. They pass on to your heirs easier. They are not subject to the mandatory distribution rules at age 70 1/2. Best of all, they put more money in your pocket at retirement than do the regular IRA's.

Next year, 2002, the annual limit goes up to $3,000. People 50 years old and older get an extra $500, for a total of $3,500 next year. These amounts will continue to increase in future years.

Feel free to call me with questions at 608-250-9926 or email me at charlie@libertyprofessionalservices.com.