Important October IRA Deadlines

Friday, October 09, 2015

By Beverly DeVeny, IRA Technical Expert
Follow Me on Twitter: @BevIRAEdSlott

There are two important dates in October, the 15th and the 31st. Read on to learn more about these deadlines and dates to put on your calendar.
 

October 15
 

  1. This is the last date for filing a personal income tax return that is on extension.
     
  2. It is the last date for making most SEP IRA contributions if the employer’s tax return is on extension to the 15th. However, it is too late to make other IRA contributions even if a return is on extension.
     
  3. It is the last date for recharacterizing a 2014 Roth IRA conversion. The recharacterization must be completed (not just started) by the 15th. A taxpayer can also recharacterize an IRA contribution to a Roth IRA or a Roth IRA contribution to an IRA.
     
  4. It is the last date for withdrawing an unwanted 2014 IRA contribution or avoiding the 6% penalty by correcting an excess IRA contribution. Any excess 2014 contribution not corrected by this date will be subject to a penalty of 6% of the excess amount for 2014.
     

October 31
 

  1. This is the IRA trust deadline for IRAs that were inherited by a trust in 2014. A copy of the trust, or a list of all its beneficiaries and their entitlements must be provided to the IRA custodian or plan administrator by the 31st. This is unfortunately the responsibility of the trustee of the trust. Why do I say unfortunately? Because the trustee of the trust is frequently a “clueless” family member. It is not the attorney’s responsibility, or the financial advisor’s job, or the CPA’s duty. A trust beneficiary must meet this requirement in order for the trust to be determined a see-through trust and to be able to use a life expectancy for calculating RMDs that will go to the trust each year. It is also the requirement that is most frequently missed, which can lead to a failure of the estate plan of the deceased IRA owner.

The 31st is also Halloween. Once you have taken care of the two deadlines above, let the child out in you and prepare to have fun!  

Receive Ed Slott and Company Articles Straight to Your Inbox!
Enter your email address:

Delivered by FeedBurner

 

Posted in: , , , ,

Content Citation Guidelines

Below is the required verbiage that must be added to any re-branded piece from Ed Slott and Company, LLC or IRA Help, LLC. The verbiage must be used any time you take text from a piece and put it onto your own letterhead, within your newsletter, on your website, etc. Verbiage varies based on where you’re taking the content from.

Please be advised that prior to distributing re-branded content, you must send a proof to [email protected] for approval.

For white papers/other outflow pieces:

Copyright © [year of publication], [Ed Slott and Company, LLC or IRA Help, LLC – depending on what it says on the original piece] Reprinted with permission [Ed Slott and Company, LLC or IRA Help, LLC – depending on what it says on the original piece] takes no responsibility for the current accuracy of this information.

For charts:

Copyright © [year of publication], Ed Slott and Company, LLC Reprinted with permission Ed Slott and Company, LLC takes no responsibility for the current accuracy of this information.

For Slott Report articles:

Copyright © [year of article], Ed Slott and Company, LLC Reprinted from The Slott Report, [insert date of article], with permission. [Insert article URL] Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.

Please contact Matt Smith at [email protected] or (516) 536-8282 with any questions.