18 Mar IRA Contributions by April 15th for 2020 Returns
While the Treasury and the IRS just announced the tax filing deadline is extended this year to May 17th 2021, that is only applicable to filing returns and making tax payments. You will still need to make IRA contributions to be able to claim a deduction by 4/15/21.
Contributions to a traditional IRA are usually tax deductible, and distributions are generally taxable. Contributions to a Roth IRA are not tax deductible, but qualified distributions are tax-free. Some taxpayers based on their income who make IRA contributions may qualify for the Saver’s Credit.
Eligible taxpayers can contribute up to $6,000 to an IRA for 2020, If you’re over 50 years of age, that increases to $7,000. In 2020, the restrictions on taxpayers aged 70.5 and older was removed. Also for 2020, if you’re covered by your employers workplace retirement plan, the deduction for contributions to a traditional IRA is generally reduced depending on your modified adjusted gross income.
Contact your accountant for more details about your IRA impacts. Or, we’re available to help you this year! Call us to schedule an appointment.