When is the Last Date Allowable for an IRA for this Year’s Taxes?
When it comes to filing your taxes successfully, it’s all about meeting deadlines. Yes, you do have to work hard to ensure that all of your tax forms are filled out correctly and accurately. Even if you have the most meticulous tax forms around, however, it still won’t matter if you get those forms in past the April deadline! The deadline for your forms isn’t the only one you have to worry about either. There are also deadlines related to your IRA, so if you have one, you need to make note of these all-important dates.
Are you the owner of a traditional IRA? If so, are you considering converting it to a Roth IRA? If you answered yes to that question, then make sure you don’t mull over that decision for too long. The deadline for conversion is December 31st. Those who are mailing in their information will need to make sure the envelope has a pre-midnight postmark, while those who file electronically will simply need to submit all necessary documentation before the day is officially over.
When it comes to opening an IRA and/or to making a contribution to your IRA, you have a little bit longer to get things done. If you want your new IRA or your contribution to count toward the tax year, just make sure everything is squared away by April 17th. Unfortunately, if you miss the deadline, that’s it. Exemptions are not available, and you’ll just have to wait until next year for your new IRA and/or contributions to show up on your taxes. This rule applies even if you get an extension for the filing of your actual tax returns. While you may be able to get those in a little later, the same isn’t true for IRA related matters.
While those are the only dates you’ll likely need to keep in mind for your IRA, there are still other looming deadlines to think about. If you, as in the situation described above, have had some trouble getting your taxes in and received an extension, know that all you’ve done is give yourself a little more time. You will have until October 15th to file your taxes, and if you miss that deadline, you could face some pretty harsh penalties. So, use your extra time wisely, and remember that October comes more quickly than you might realize.
And, just in case you’ve forgotten, the big day for turning in those tax returns without an extension is April 17th, the same day you’ll need to have all of your IRA business sorted out. If you don’t think you’ll be able to keep all of these dates straight in your head, work with a knowledgeable tax preparer who can let you know when deadlines are approaching. Just make sure you don’t wait until the last minute. The end of January is the ideal time to start getting all necessary documents together and preparing to file.
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