The IRS is giving us all more time to gather the funds to make our 2020 IRA contributions. The usual deadline of April 15 has been extended, just as the deadline for filing our federal tax returns, to May 17.
According to the IRS release, “In extending the deadline to file Form 1040 series returns to May 17, the IRS is automatically postponing to the same date the time for individuals to make 2020 contributions to their individual retirement arrangements (IRAs and Roth IRAs), health savings accounts (HSAs), Archer Medical Savings Accounts (Archer MSAs), and Coverdell education savings accounts (Coverdell ESAs).”
The postponement also extends to May 17 the deadline for reporting and payment of “the 10 percent additional tax on amounts includible in gross income from 2020 distributions from IRAs or workplace-based retirement plans,” the release noted. It also moves back “the due date for Form 5498 series returns related to these accounts to June 30, 2021.”
The IRA contribution deadline is one of multiple extensions and postponements the IRS has announced to address some of the financial challenges Americans encountered in 2020 resulting from the COVID-19 pandemic. Contact your financial advisor for complete details.
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