Smart Advice. Simply. Clearly.
IRA Deadlines Are Approaching
Here’s what you need to know.
Provided by Hilltop Wealth Solutions
Financially, many of us associate the spring with taxes – but we should also associate December with important IRA deadlines. This year, like 2020, will see a few changes and distinctions.
December 31, 2021, is the deadline to take your Required Minimum Distribution (RMD) from certain individual retirement accounts.
May 17, 2021, is the deadline for making 2020 annual contributions to a traditional IRA, Roth IRA, and certain other retirement accounts. This extension from the traditional April 15 deadline follows an extension of the traditional tax deadlines.1
Some people may not realize when they can make their IRA contribution. Unless the tax filing deadline has been changed, you can make a yearly IRA contribution between January 1st of the current year and April 15th of the next year. Accordingly, you can make your IRA contribution for 2021 any time from January 1, 2021 to April 15, 2022.2
Thanks to the SECURE Act, a person can open or contribute to a Traditional IRA past age 70½ as long as they have taxable income.
If you are making a 2021 IRA contribution in early 2022, 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 “2022 IRA contribution” or “2021 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.
Hilltop Wealth Solutions CEO, Erik Brenner, may be reached at 574.889.7526 or
erikbrenner@loneb30.sg-host.com.
www.hilltopwealthsolutions.com
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
- irs.gov, March 29, 2021
- irs.gov, November 10, 2020
This article was researched and written by the staff of Hilltop Wealth Solutions.
It is one of many that are published on our website at hilltopwealthsolutions.com.
For more information on this article contact
Tim Ceravolo at 574-675-9277 or 574-889-7526
574.889.7526 | toll free: 833.889.7526
fax: 574.889.5392
email: info@HilltopWealthSolutions.com
www.HilltopWealthSolutions.com