IRA Contributions for 2019
Since the tax filing deadline has been moved to July 15, 2020 will they also allow contributions to traditional IRAs up until that date too?
Now that the filing deadline has also been moved to July 15, can we be confident that the IRA / Roth IRA / HSA contribution deadline is now July 15 as well?
Yes, if the filing due date is advanced, so is the contribution due date unless specifically stated otherwise. As for making contributions after 4/15, make sure your custodian is able to accept them and has re programed their system to accept 2019 contributions after 4/15. Clearly flag your contributions to show the applicable year, then check after the contribution has been deposited that it has been recorded as a 2019 (prior year) contribution.
In order for the post-April 15th regular IRA contributions to appear on the 2019 5498 as a “prior year”, the IRS would have to also extend the 5498 filing deadline to the end of July or August 2020 to capture the “prior year” contributions. Wouldn’t it be easier to just call them “postponed contributions” and report them on line 13a, 13b and 13c on the 2020 5498 just like we do for late contributions due to military extensions and federal disaster extensions?
Either way should work. Perhaps they will go with your idea since it allows the 5498 cycle to remain in place, but custodians must still capture the post 4/15 2019 contributions at the time of the contribution. With the chaos, some custodians may not accept such contributions and it would be understandable.
- The IRS has now confirmed that 2019 IRA and HSA contributions can be made through 7/15/2020. Check to be sure your IRA custodian can handle this correctly before making such a contribution, and if they can, be sure to flag the contribution for 2019. One way is to write “Prior year contribution” on your check. IRS Release below:
- https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers
Permalink Submitted by Alan - IRA critic on Thu, 2020-03-19 14:17
The tax filing deadline was not moved forward, just the tax due date. Therefore, the IRA contribution deadline remains 4/15/2020, and that is also the deadline to file unless an extension is filed.
Permalink Submitted by James Arnold on Fri, 2020-03-20 14:44
Thank you again Alan.