Check not received for 2018 IRA contribution
Client sent a check from his office to a local Fidelity office for a 2018 IRA contribution. The check wasn’t received by Fidelity and the client didn’t know until his next bank statement was generated. Once he realized the error, he wrote another check and overnighted to Fidelity. Fidelity will not accept it as a 2018 because it was past the deadline of April 15. We are in the process of getting bank confirmation of the “stop” that was put on the original check. Has anyone had any luck with this or have any ideas for us to pursue? He is not just a very good client but a nice guy too. Thank you, Erwin
Permalink Submitted by Alan - IRA critic on Mon, 2019-06-24 23:21
Assuming the check has not been cashed, all that can be done is to stop payment. There will be no 2018 contribution allowed. If the intended contribution was deducted on the 2018 return, that return will have to be amended. If it was reported as non deductible, Form 8606 can be revised by itself. I guess this is the risk in making a prior year contribution in March or April. If the second check was not returned, check to see if it was applied to 2019.