A Tax-Filing Extension Does Not Mean an IRA Contribution Extension

Tuesday, March 31, 2015

By Joe Cicchinelli, IRA Technical Expert
Follow Me on Twitter: @JoeCiccEdSlott

As we approach the April 15, 2015 tax-filing deadline for completing our 2014 federal income taxes, you might need some more time to file your taxes. If you haven’t yet filed your taxes, or worry that you won’t be able to by Wednesday, April 15, 2015: don’t panic. You can request an automatic six-month extension to file. An easy way to get the extra time is through the Free File link on IRS.gov. In a matter of minutes, anyone, regardless of income, can use this free service to electronically request an extension on IRS Form 4868. Filing this form gives you until October 15, 2015 to file your 2014 tax return. However, to get the extension, you must estimate the taxes you’ll owe and should also pay any amount due. But, be aware that a request for an extension will give you extra time to file your tax return; not extra time to pay any taxes owed.

The deadline for making your IRA contribution for 2014 is also April 15, 2015. Even if you filed for an extension to file your taxes, that does not extend your IRA contribution deadline. The IRA deadline is your un-extended tax filing deadline.

There are some exceptions to this rule:

  • If you are in the military and served in a combat zone, you may have more time to make an IRA contribution for 2014. If you served in a combat zone between January 1 and April 15, you have a minimum of 180 days after you left the combat zone to make an IRA contribution for the year. See IRS Publication 3, Armed Forces Tax Guide, for more information.
     
  • If you mailed your 2014 IRA contribution by April 15, 2015, but it was received by the IRA custodian after April 15, it’s considered timely as long as it was postmarked by April 15. The postmark can be from the U.S. Postal Service, and even one of two private delivery service company’s postmark, such as Federal Express and United Parcel Service. See the instructions to IRS Form 1040, which tells you which private delivery service company postmarks qualify.

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