Five Ways to Time Your IRA Contribution – Lump Sum, Monthly Investing and More

Steve, Mike, Larry, Tom and Paul were college friends who graduated 40 years ago. On they day they graduated, they made a pact to max out their IRAs every year, starting in 1982. (It was a Traditional IRA back then as the Roth wasn’t introduced until 1997).

IRA Investors

They continued contributing every year for 40 years from 1982-2021. Every year they maxed out their IRAs as allowed by the IRS. Over the years the IRS has changed that contribution limit as follows:

  • 1982-2000: $2,000
  • 2002-2004: $3,000
  • 2005-2007: $4,000
  • 2008-2012: $5,000
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