IRA Contribution deadline for Procrastinators
The IRS has released a letter ruling allowing an IRA custodian to accept the date of a verbal request to transfer funds from other accounts held by that custodian as an IRA contribution.
http://www.ascensus.com/CompanySite/Utility/News/index.htm?NewsID=1792
That said, the usual disclaimers regarding PLRs apply, a given custodian does not have to change their internal procedure if they choose not to, and procrastination by taxpayers in general has negative implications.
Permalink Submitted by Jose Morales on Thu, 2014-09-18 17:15
Thank you for sharing! I think the real catch here is “as soon as administratively practicable.” For a large brokerage or mutual fund company that may be flooded with last minute prior year contribution requests, it may be impossible to execute the instructions received by the due date. For a small bank that has no excuse for not completing the contrituion in a timely manner, this might not be much of a safety net if more than a business day passes.