IRA contribution for 2020 due 4/15 or 5/17?

Technical topics regarding tax preparation.
#1
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IRA contribution for 2020 due 4/15 or 5/17?
 

#2
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5/17
 

#3
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I can't find anything to support it. Where did you see this? Thanks.
 

#4
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It's tied to the due date of the tax return. If the 1040 date gets postponed, IRA contributions automatically go with it. See Pub 590-A.
 

#5
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It's tied to the due date of the return without extensions. The IRS did not change the due date of the return, they gave everyone an automatic extension to 5/17 according to their verbiage.

So I'm not so sure the IRA contribution deadline isn't still 4/15.
 

#6
Nilodop  
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Or did they call it a postponement, like a yar ago.
 

#7
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From 590-A: "Contributions must be made by due date. Contributions can be made to your traditional IRA for a year at any
time during the year or by the due date for filing your return for that year, not including extensions. For most people, this means that contributions for 2020 must be made by April 15, 2021."

Of course this hasn't been, and I expect won't be, updated, to reflect the May 17 new deadline. After all, isn't the May 17 deadline considered an extended due date?

I just wish that in the various recent IRS announcements that have been made I would have found one that said "The IRA deadline is also extended to May 17, 2021."

Oh well, until I see something that really convinces me, I am going to recommend April 15 to my clients.
 

#8
Nilodop  
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When is the 2020 IRA contribution deadline?
The 2020 IRA contribution deadline has been extended to May 17, 2021. The IRS has stated that they will be providing formal guidance in the coming days.
. My secret source.

Currently, April 15 is still the last day to contribute to an IRA or and HSA for 2020. The IRS hasn’t said that it will push back the date to align with the tax return filing deadline.
. Ditto.

The IRS has extended the April 15 deadline for filing and paying 2020 federal individual income taxes to May 17. An extension from April 15 for 2020 IRA contributions was not indicated. Additional IRS guidance will follow. For residents of Louisiana, Oklahoma, and Texas the deadline has been extended to June 15 for filing, payments, and IRA contributions.
Ditto

The extension will also provide taxpayers additional time to contribute to an Individual Retirement Account (IRA), and thereby decrease their AGI to potentially receive more favorable tax benefits. A taxpayer will be deemed as making an IRA contribution on the last day of the 2020 tax year provided the IRA contribution is made no later than the original due date of the 2020 tax return. Now that the due date is extended to May 17th, additional planning can occur.
Ditto

If you didn't max out your 2020 Roth IRA contribution, it's not too late. The deadline for making your contribution isn't until Tax Day, typically April 15. But this week, the IRS announced that it's extending the tax deadline to May 17. That means you just got an extra month to max out your Roth IRA for 2020.
Ditto

Contributions to a traditional IRA can be tax-deductible. You have until the May 17, 2021, tax deadline to contribute to an IRA, either Roth or traditional, for the 2020 tax year.
Ditto
 

#9
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Nilodop's secret source. Interesting.
 

#10
Nilodop  
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But the Tax Day deadline applies to traditional IRAs and health savings accounts (HSA), so you'll have until May 17 to max out your contributions. By doing so, you may be able to lower your taxable income for the year. But if you've already submitted your 2020 tax return, you'll need to file an amended return to deduct your contributions.
. Ditto

While not yet confirmed by the IRS, it appears this most recent action will result in the deadline for making IRA and HSA contributions for tax year 2020 also being extended until May 17, 2021.
. Ditto

The federal tax and IRA contribution due date was extended to May 17th.
. Ditto

3. Contribute to or open an IRA by Tax Day
Contributions to a traditional IRA can be tax-deductible. You have until the May 17, 2021, tax deadline to contribute to an IRA, either Roth or traditional, for the 2020 tax year.
. Ditto

In addition, the IRS has not yet given further guidance on whether other deadlines will also be extended. That includes contributions to individual retirement accounts and health savings accounts.
. Different secret source

Question: Has the deadline to make an IRA contribution for 2020 been extended since the 2020 tax filing date has been extended to May 17, 2021? Robert Answer: Hi Robert, Yes. The 2020 IRA contribution deadline is also extended to May 17, 2021.
. First secret source
 

#11
mariaku  
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I, too, heard it from very reputable unofficial sources. May 17.
 

#12
Nilodop  
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#13
ELKCPA  
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Re. Texas tax returns: We've attempted to efile 1040s with tax due 6/15 to be paid at that time. The IRS rejects the returns saying the tax payment is past the due date. I use Proseries and turn off error checking which allows the return to go through, but the rejection is coming from the "taxing authority". I have a bad feeling all of our returns filed after 5/17 are going to be treated as late by the IRS. I guess there isn't a question in there, but if anyone knows a fix I would be happy to know. I don't think filing a bunch of extensions on 5/17 would solve the problem, but just causes more problems if tax is due and not paid.

I'm so glad I'm close to going part time. This makes my head hurt.

Is anyone else tired of these almost never ending tax filing seasons?
 

#14
Joan TB  
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Have you called Proseries and asked their help desk?

For my Texas returns, I am putting FEMA 4586 (Texas - Severe Winter Storms) at the top of the 1040 so the IRS has been notified up front. In Lacerte, this gets transmitted with the efile.

Per IR-2021-43 the IRS says:
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.


This may be small comfort if your clients are those the DREAD an IRS letter, but if you explain the situation up front, maybe they won't be so "traumatized". Who knows - maybe they can even call the IRS themselves to get it abated!
 


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