What's Driving the Sales?
January 21, 2002
There are a couple of reasons why February 1 to April 15, commonly known as "tax season," is the time of year when most IRA sales occur, said Dan Reinhold, director of retirement plans for Franklin Templeton. For one, investors can open an IRA and make contributions that are deductible from the previous year's taxes until April 15. Consequently, as people realize the tax payments they will have to make, opening an IRA account becomes increasingly attractive.
While only new IRA accounts can be deducted from the previous year's taxes, contributions into existing accounts increase dramatically during tax season as well, said Dan Reinhold, director of retirement plans for Franklin Templeton.
"It's just the mind-set while people are doing their taxes," he said. "IRA promotions typically take place during tax season. It's just an opportune time because consumer consciousness is elevated in that period of time."