simple ira contributions

Submitted by Michael Porfido on Mon, 2016-10-03 21:06

Can a sole proprietor make his simple IRA contribution now for the tax year of 2015 if he extended his filing date to Oct. 15th?

Permalink Submitted by David Mertz on Tue, 2016-10-04 17:51

Elective deferrals were required to have been made by January 30, 2016. If he made no elective deferrals for 2015 by that date, there is nothing on which to make a matching contribution. He can still make a 2% nonelective contribution, subject to limitations, until the extended due date of the tax return. See https://www.irs.gov/retirement-plans/simple-ira-plan-faqs-contributions and IRS Pub 560: https://www.irs.gov/pub/irs-pdf/p560.pdf
The ability to make any SIMPLE IRA contibution for 2015 assumes that he already has a SIMPLE IRA plan. It’s too late to establish a new plan for 2015.
It may still be possible to establish a SEP-IRA to receive a contribution for 2015.