Four October 15 Deadlines You Don’t Want to Miss

Wednesday, October 02, 2019

By Sarah Brenner, JD
IRA Analyst
Follow Us on Twitter: @theslottreport

October is upon us. This means fall is in full swing. Along with football, pumpkin-spice everything and stocking up on candy for trick-or-treat come four important October 15 deadlines you will not want to miss!

1. Did you contribute too much to your traditional or Roth IRA for 2018? Maybe you were 70 ½ or over in 2018 and made a contribution to a traditional IRA. Or, maybe your income ended up being higher than you expected and it turned out you were ineligible for the Roth IRA contribution you made. If you made an excess contribution to your traditional or Roth IRA for 2018, you will want to fix that mistake by withdrawing the contribution, plus net income or loss attributable. Your deadline for getting this done and avoiding the 6% excess contribution penalty is October 15, 2019.

2. While Tax Reform did away with recharacterization of Roth IRA conversions, recharacterization of tax year contributions remains an option. Have you changed your mind about which type of IRA to which you wanted to make your 2018 contribution? Maybe you contributed to a Roth and now you think a traditional IRA is a better fit, or vice versa. October 15, 2019 is your last chance to recharacterize that contribution to the other type of IRA.

3. While your income does not affect your ability to make a traditional IRA contribution, it may affect your ability to deduct it if you, or your spouse, are a participant in an employer plan. If you later discovered that your 2018 traditional IRA contribution was not deductible, October 15, 2019 is the deadline to correct this problem. If you miss the deadline, the contribution must remain in the IRA as a nondeductible IRA contribution.

4. Employers who are interested in establishing and funding a SEP IRA for 2018 may have a little more time to get this done. The deadline for making a SEP contribution is the business’s tax-filing deadline, including extensions. For some businesses that date is October 15, 2019.

 

Post Views: 5

Content Citation Guidelines

Below is the required verbiage that must be added to any re-branded piece from Ed Slott and Company, LLC or IRA Help, LLC. The verbiage must be used any time you take text from a piece and put it onto your own letterhead, within your newsletter, on your website, etc. Verbiage varies based on where you’re taking the content from.

Please be advised that prior to distributing re-branded content, you must send a proof to [email protected] for approval.

For white papers/other outflow pieces:

Copyright © [year of publication], [Ed Slott and Company, LLC or IRA Help, LLC – depending on what it says on the original piece] Reprinted with permission [Ed Slott and Company, LLC or IRA Help, LLC – depending on what it says on the original piece] takes no responsibility for the current accuracy of this information.

For charts:

Copyright © [year of publication], Ed Slott and Company, LLC Reprinted with permission Ed Slott and Company, LLC takes no responsibility for the current accuracy of this information.

For Slott Report articles:

Copyright © [year of article], Ed Slott and Company, LLC Reprinted from The Slott Report, [insert date of article], with permission. [Insert article URL] Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.

Please contact Matt Smith at [email protected] or (516) 536-8282 with any questions.