Retirement Plan Income Tax Deadlines

Friday, April 05, 2013

By Beverly DeVeny, IRA Technical Expert

Follow Me on Twitter: @BevIRAEdSlott

We are down to the wire. Tax day is Monday, April 15th and it is coming up quickly. Following are some retirement plan deadlines you don’t want to miss!
 

April 15th: This is the last day you have to make an IRA or Roth IRA contribution for 2012. There are exceptions for individuals in certain combat zones, and there may be extensions for individuals in certain federally declared disaster areas. The contribution limit for 2012 is $5,000 per person (those age 50 or older at any time in 2012 can add an additional $1,000 to their accounts for a total of $6,000). You must have earned income at least equal to the amount you contribute. You cannot make an IRA contribution if you were age 70 ½ or older in 2012. There are income limits for making a Roth contribution. Participation in an employer plan has NO impact on your ability to make IRA or Roth IRA contributions.

October 15th: This is the deadline for recharacterizing a contribution or a Roth conversion. You must have timely paid your taxes and filed your return or your return must be on extension to qualify for this date.

This is also the deadline for timely removing an excess contribution made for 2012. If the contribution is not removed in accordance with IRS guidelines, the 6% penalty will apply to the amount of the excess contribution.

This is also the deadline for making employer contributions to a SIMPLE IRA. The SIMPLE IRA must have been timely established in 2012.

December 31st: This is the deadline for taking a 2013 required distribution. If 2013 is your first distribution year, you can delay the first distribution until April 1, 2014. However, you would still have to take a second distribution for 2014 by the end of 2014.

This is the last date to do a Roth conversion for 2013. In order for a conversion to be a 2013 conversion, the funds must be out of the IRA or employer plan by December 31, 2013. You do not have until April 15, 2014 to do a 2013 Roth conversion.

SEP IRA Contribution Deadline: SEP IRAs can be established and funded up to the tax filing deadline plus extensions for the business. The business need not be on a calendar year.

You can find more information on these deadlines in IRS Publication 590 (for IRAs) or Publication 560 (for SEPs and SIMPLEs) on the IRS website at www.irs.gov.

Timing is everything. Don’t miss your deadline.

 

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