The Associated Press

February 11, 2025, 12:32 PM

You’ve probably got one or two financial jobs on your to-do list that you were too busy to get to or perceived as boring administrative work. Here are some tasks that a) frequently fall by the wayside and b) don’t take a lot of time to rectify.

Pain point 1: Contributing to an IRA

For higher-income savers with good-quality 401(k) plans, it’s easy to see why putting additional funds into an IRA might not seem like a must-do. But making $7,000 annual contributions for 30 years and earning a 6% return would translate into an additional $550,000 in retirement.

Tips to get it done: To make hitting IRA contributions more doable and palatable from a budgetary standpoint, put them on autopilot, instructing your investment provider to deduct whatever amount you can swing from your checking account on a monthly basis.

Pain point 2: Converting ’backdoor’ contributions to Roth

If the conversion is done shortly after the contribution, the investments won’t likely rack up much gains in the interim, and any taxes on conversion are also apt to be limited. But if too much time elapses and you invested in something that has enjoyed nice gains since you bought it, you’ll owe ordinary income tax on that appreciation when you finally get around to converting.

Tips to get it done: It’s wise to wait at least a few days after the contribution to make a conversion. To make sure you don’t forget, schedule the conversion date on your calendar at the same time you make the contribution.

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