Although the IRS tax code seems to grow in complexity each year, taxpayers might like to think that IRA contribution rules would be fairly consistent with regard to contribution dates.? Unfortunately, consistency is not the case pertaining to various types of IRA?s.? Let?s take a closer look.
Traditional and Roth IRA?s.? The due date for taxpayers to open and contribute to an IRA is the tax filing date of your tax return, April 15, excluding the extension filing date.?
SEP-IRA.? The due date for self-employed individuals to both establish and contribute to this type of retirement plan is the tax return due date including extensions.? Depending on whether you are an incorporated entity or an individual, this date would be either September 15 or October 15, respectively.?
Solo 401(k).? The due date to establish this plan is December 31 (of the current tax year).? However, the taxpayer then has until the tax return due date, including extensions, to fully fund the retirement contribution.? Similar to a SEP-IRA, depending on whether you are an incorporated entity or an individual, this date would be either September 15 or October 15, respectively.?
SIMPLE IRA. ?The due date to establish this plan is October 1 (of the current year).? The salary deferral portion of contributions for the owner and employees is December 31.? The employer matching or safe harbor contribution must be contributed by the tax return due date, including extensions.? Similar to the previous two plans noted above, depending on whether you are an incorporated entity or an individual, this date would be either September 15 or October 15, respectively.?
Roth Conversion. ?The due date to convert an IRA to a Roth IRA is December 31 (of the current tax year).?