2021 SEP IRA funding | Ed Slott and Company, LLC

2021 SEP IRA funding

I have a client whose 2021 federal tax return was extended to October 15, 2022.
She had us e-file it about in early May and it has been accepted by the IRS.
She now wants to fund her SEP-IRA for 2021 after filing the return. The SEP IRA has been in existence since 2019.
Can she still fund her SEP-IRA for 2021 since the return was filed before the extended due date? I've seen conflicting answers on this. Some say yes and some say no.

Since the extension was timely filed, the SEP contribution can be made up to 10/17/2022 despite the actual return being filed before the contribution. Of course, the contribution needs to be reported on the return or the return will have to be amended.

Thank you

Would you have any sort of authoritative guideance from the IRS for your answer?

  • From the IRS website on SEP IRAs, paragraph copied below:
  • "When must I deposit the contributions into the SEP-IRAs?You must deposit contributions for a year by the due date (including extensions) for filing your federal income tax return for the year. If you obtain an extension for filing your tax return, you have until the end of that extension period to deposit the contribution, regardless of when you actually file the return."

Thank you times two sir

 

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