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2020 IRA Deadlines Are Approaching

Stuart Cooper
Stuart Cooper is a financial advisor with  Consumers Financial Group.

Here is what you need to know.

Provided by Stuart Cooper, CRPC®, Michael Chatterton, CRPC® Gerran Batterberry & Michael Pozzi

 

 

Update: The IRS extended the federal tax day deadline from April 15, 2021 to May 17, 2021 including filing and payment.As a result, the new deadline for 2020 IRA contributions is May 17.

Some people may not realize when they can make their IRA contribution. You can make a yearly IRA contribution between January 1 of the current year and April 15 of the next year (May 17 for 2021). Accordingly, you can make your IRA contribution for 2020 any time from January 1, 2020 to May 17, 2021.
 
Thanks to the SECURE Act, traditional IRA owners can now contribute to their IRAs past age 72 as long as they have taxable income.    
 
If you are making a 2020 IRA contribution in early 2021, you must tell the investment company hosting the IRA account for which year you are contributing. If you fail to indicate the tax year that the contribution applies to, the custodian firm may make a default assumption that the contribution is for the current year (and note exactly that to the I.R.S.).
   

So, write “2021 IRA contribution” or “2020 IRA contribution,” as applicable, in the memo area of your check, plainly and simply. Be sure to write your account number on the check. If you make your contribution electronically, double-check that these details are communicated.

While many of us associate April with taxes, we should also associate December with important IRA deadlines. December 31, 2021 is the deadline to take your Required Minimum Distribution (RMD) from certain individual retirement accounts.

 

 

 


Stuart Cooper, CRPC® may be reached at 847‐672‐1833 or [email protected]

Gerran Batterberry may be reached at 847‐672‐1291 or [email protected]

Michael Pozzi may be reached at 847‐672‐1292 or [email protected]

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note ‐ investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations
1. irs.gov, March 17, 2021