Proposed tax filing extension [Retirement contributions also extended?]

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eltron
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Proposed tax filing extension [Retirement contributions also extended?]

Post by eltron » Fri Mar 20, 2020 9:48 am

With the proposed tax filing extension being moved from April 15th to possibly July 15th I was wondering if this also gives us the window to max out our 2019 retirement accounts from April 15th to July 15th as well.

H-Town
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Re: Proposed tax filing extension

Post by H-Town » Fri Mar 20, 2020 9:51 am

eltron wrote:
Fri Mar 20, 2020 9:48 am
With the proposed tax filing extension being moved from April 15th to possibly July 15th I was wondering if this also gives us the window to max out our 2019 retirement accounts from April 15th to July 15th as well.
Until you see the guidance in writing from the IRS, don't assume this would happen. Just wait and see.

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Re: Proposed tax filing extension

Post by LookinAround » Fri Mar 20, 2020 10:55 am

My guess: No. The purpose of delaying payment is to allow people to have that money 90 days longer for cash on hand to help pay daily expenses. Allowing you to put away more $$ (only reducing your cash on hand) would be contrary to the intent.

But, as mentioned, best wait till you hear specific guidance.

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eltron
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Re: Proposed tax filing extension

Post by eltron » Fri Mar 20, 2020 5:19 pm

My accountant just emailed me and said with the new filing we do, in fact, have until 07/15/20 to fund retirement accounts for 2019.

I want to check with Fidelity to confirm, but great news if true.

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Phineas J. Whoopee
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Re: Proposed tax filing extension

Post by Phineas J. Whoopee » Sat Mar 21, 2020 7:05 pm

Beware the Ides of April your state taxation authority, if there is one.
PJW

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Re: Proposed tax filing extension

Post by cloneman33 » Sat Mar 21, 2020 8:04 pm

Would April Quarterly tax estimate payments also be extended to July 15?

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Re: Proposed tax filing extension

Post by jebmke » Sat Mar 21, 2020 8:05 pm

cloneman33 wrote:
Sat Mar 21, 2020 8:04 pm
Would April Quarterly tax estimate payments also be extended to July 15?
Yes
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Re: Proposed tax filing extension [Retirement contributions also extended?]

Post by LadyGeek » Sat Mar 21, 2020 8:08 pm

This thread is now in the Personal Finance (Not Investing) forum (taxes). I retitled the thread for clarity.

Also see: [IRS tax filing deadline moved to July 15]
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Re: Proposed tax filing extension [Retirement contributions also extended?]

Post by Alan S. » Sat Mar 21, 2020 8:24 pm

Yes, the IRA contribution deadline is now 7/15.
However, your custodian may not have updated their system by 4/15 to accept 2019 contributions after that date. Best to check with your custodian, and also to clearly flag your post 4/15 contribution as a 2019 contribution if that is what you want. Then check your account right after contributing to make sure it was applied to 2019.

Staff may be prone to error on this after decades of dealing with the 4/15 deadline. They may also be stressed out and not paying attention, so verify that they applied your contribution correctly.

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eltron
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Re: Proposed tax filing extension [Retirement contributions also extended?]

Post by eltron » Sun Mar 22, 2020 8:17 am

Alan S. wrote:
Sat Mar 21, 2020 8:24 pm
Yes, the IRA contribution deadline is now 7/15.
However, your custodian may not have updated their system by 4/15 to accept 2019 contributions after that date. Best to check with your custodian, and also to clearly flag your post 4/15 contribution as a 2019 contribution if that is what you want. Then check your account right after contributing to make sure it was applied to 2019.

Staff may be prone to error on this after decades of dealing with the 4/15 deadline. They may also be stressed out and not paying attention, so verify that they applied your contribution correctly.
Good points. Question though - I have both Vanguard and Fidelity accounts. I know when I go to fund accounts with Vanguard it asks, very clearly, which tax year I want to fund. Vanguard is much easier to deal with in the fact they allow me to ACH transfer funds into the account of my choosing. Fidelity, on the other hand, I have to physically go into one of their branches and hand them a physical check and then hope they listen to my request. Is there anywhere on Fidelity's website I can check what tax year the funds went to? I was unaware I could check tax year on Fidelity's website.

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eltron
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Re: Proposed tax filing extension [Retirement contributions also extended?]

Post by eltron » Tue Mar 24, 2020 8:25 am

Same accountant contacted me this morning and now it's back to the deadline for retirement accounts not being extended. 2019 retirement funds need to funded by 04/15/20. At least for now. It seems no one can get a clear message on anything.

The small business is already going to get pounded and lose money. Would be nice if we at least were given time. I guess that's just a tall ask.

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Re: Proposed tax filing extension [Retirement contributions also extended?]

Post by Alan S. » Tue Mar 24, 2020 5:44 pm

The IRS finally confirmed today that the IRA and HSA contribution deadline is indeed 7/15. Here is the release:

https://www.irs.gov/newsroom/filing-and ... nd-answers

That said, it is till possible that some custodians will not extend the date. Check with your custodian before attempting to make a contribution for 2019 after 4/15.

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eltron
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Re: Proposed tax filing extension [Retirement contributions also extended?]

Post by eltron » Tue Mar 24, 2020 10:31 pm

Alan S. wrote:
Tue Mar 24, 2020 5:44 pm
The IRS finally confirmed today that the IRA and HSA contribution deadline is indeed 7/15. Here is the release:

https://www.irs.gov/newsroom/filing-and ... nd-answers

That said, it is till possible that some custodians will not extend the date. Check with your custodian before attempting to make a contribution for 2019 after 4/15.
Great to hear. I assume it includes all retirement accounts.

Reason I ask is because I’m funding a solo 401k - not an IRA. I’m sure it’s just a technicality but I wanted to make sure I wasn’t overlooking anything.

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Re: Proposed tax filing extension [Retirement contributions also extended?]

Post by Spirit Rider » Tue Mar 24, 2020 10:59 pm

eltron wrote:
Tue Mar 24, 2020 10:31 pm
Alan S. wrote:
Tue Mar 24, 2020 5:44 pm
The IRS finally confirmed today that the IRA and HSA contribution deadline is indeed 7/15. Here is the release:

https://www.irs.gov/newsroom/filing-and ... nd-answers

That said, it is till possible that some custodians will not extend the date. Check with your custodian before attempting to make a contribution for 2019 after 4/15.
Great to hear. I assume it includes all retirement accounts.

Reason I ask is because I’m funding a solo 401k - not an IRA. I’m sure it’s just a technicality but I wanted to make sure I wasn’t overlooking anything.
Yes, if you read the Q&A linked by Alan.

IRAs (Q&A 17), HSAs (Q&A 21) and employer plans (one-participant 401k, SEP and SIMPLE IRA plans) (Q&A 20).

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Re: Proposed tax filing extension [Retirement contributions also extended?]

Post by rascott » Wed Mar 25, 2020 9:56 am

I also wonder if brokers will have issues with their systems posting 2019 IRA contributions after 4/15.....

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Re: Proposed tax filing extension [Retirement contributions also extended?]

Post by Spirit Rider » Wed Mar 25, 2020 2:40 pm

That remains to be seen.

Fidelity had a banner reporting the 7/15 IRA contribution date yesterday. You wouldn't think they would do that unless they were prepared to accept such contributions after 4/15.

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Re: Proposed tax filing extension [Retirement contributions also extended?]

Post by Alan S. » Wed Mar 25, 2020 3:14 pm

rascott wrote:
Wed Mar 25, 2020 9:56 am
I also wonder if brokers will have issues with their systems posting 2019 IRA contributions after 4/15.....
I think these large custodians have talked to IRS insiders regarding reporting and know what they will have to do. Otherwise, they would not be so quick to announce acceptance of these late contributions.

My guess is one of two approaches, and IRA custodians would probably prefer the second one:
1) Extend the 5498 reporting cycle by 3 months
2) Maintain the current 5498 cycle, then use Box 13 with a special disaster code under which the late 2019 contributions would be reported on the 2020 5498 issued in May, 2021. That same 5498 would report 2020 contributions in Box 1.

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