IRA deposit deadline
A client mailed in a check on April 15th directly to the IRA custodian for a 2010 tax deduction. Unfortunately, the check was not dated and the custodian returned the check to the account owner. Is there any kind of exception that would allow her to resend the check now and still take the deduction for tax year 2010?
Thank you!
Permalink Submitted by Alan Spross on Thu, 2011-04-28 18:24
I don’t know if the custodian COULD HAVE imputed a date and accepted the check since the time deadline was not a factor. But they obviously chose not to accept it and under those circumstances, the client is out of luck.
Permalink Submitted by Jose Morales on Thu, 2011-04-28 18:27
[quote=”[email protected]“]A client mailed in a check on April 15th directly to the IRA custodian for a 2010 tax deduction. Unfortunately, the check was not dated and the custodian returned the check to the account owner. Is there any kind of exception that would allow her to resend the check now and still take the deduction for tax year 2010?
Thank you![/quote]
The tax year for which a contribution is being made must always be designated in writing. If it is not designated in writing it is assumed to be for the year in which it is being made.
Permalink Submitted by Jonathan Sard on Thu, 2011-04-28 19:06
The client did indicate the tax year for which it was for, but the custodian returned the check and did not formally acknowledge anything else.
Permalink Submitted by Jose Morales on Thu, 2011-04-28 19:39
[quote=”[email protected]“]The client did indicate the tax year for which it was for, but the custodian returned the check and did not formally acknowledge anything else.[/quote]
Does the custodian normally accept IRA deposits by mail? At this point I would want a formal explanation for why the check was not deposited, which could be many things:
-they do not accept mailed in IRA deposits
-they do not accept deposits without a contribution form
-they do not accept prior year deposits received after the tax filing deadling
-there was a problem with the check itself, such as it not being endoresed
Once you know why they didn’t accept this deposit you will have more of an idea of whether you have an arguement
Permalink Submitted by Jonathan Sard on Thu, 2011-04-28 19:44
They did not accept the check because the check was not dated.
Permalink Submitted by tomd37 on Thu, 2011-04-28 20:39
Sounds like the client was at fault 😳 . I can understand the payee not accepting an undated check.
Tom D.