simple ira – cotnribution deadline
Sole prop (no employees) sponsors a simple IRA
Owner is being told by the IRA custodian he missed the deadline to contribute for 2015. Per the custodian – a 2015 contribution deadline was 1/30/2016 (i.e. 30 days for the year end). I’ve never heard of this before.
I think the custodian is confusing the timing of employee salary deferral contributions with a self employed individual (owner). In this case the owner (self employed) waited until his accountant finished his 2015 taxes prior to making a salary deferral contribution.
Can someone please confirm the deadline? Also provide an IRS and/or DOL link or code to referencing the deadline?
Thank you
Permalink Submitted by Alan - IRA critic on Tue, 2016-02-23 00:44
The salary reduction contribution is due by 1/30, actually 30 days for each month of the year after the end of that month. For sole props that would not be able to obviously be capped with the fairly low SIMPLE contribution limit, and is not an S Corp shareholder this would put time pressure on each month’s contribution. A sharp bookeeping service might be the answer. Note that any matching contributions or non elective contributions have the later deadline of the extended due date for the return.