Change IRA Contribution Year
Hello,
In February 2024, my client made a 2024 IRA contribution and indicated such on the IRA contribution form with the 2024 IRA contribution limits of $8,000 (they are over age 50). Today they reached out to me and now want to change the contribution year to 2023. I am not finding anything in writing that says that the contribution year can be changed after tax filing deadline. Am I missing something?
Permalink Submitted by Alan - IRA critic on Wed, 2024-06-05 19:43
No, you are correct. After the tax due date (4/15) the contribution year cannot be changed and the IRA custodian will have reported the contribution year on Form 5498. Since this was a 2024 contribution, the 5498 will not be issued until May, 2025 and no 2023 5498 was issued.
An exception could apply if the client lives in a federal disaster area in which the 2023 tax due date was extended by the IRS to a day that we have not yet reached. Most of these disaster extensions do include extension for making an IRA contribution, but the particular disaster declaration must be checked to confirm that this applies. In that case, the client could contact the custodian and request that the contribution be changed to a 2023 contribution.