IRA Contribution Deadlines Reminder
Many of us associate taxes with spring because the annual tax filing due date is mid-April. However, making annual contributions to your Individual Retirement Account (IRA) are an important aspect of your taxes. As we think about IRA contributions heading into 2024, there are a few distinctions worth noting.
* Remember, this article is for informational purposes only. It is not a replacement for real-life advice, so please be sure to consult your tax, legal, and accounting professionals for the most up-to-date information about IRA account deadlines and contribution strategies.
If you are like many individuals, you are probably not aware of the timeframe for making IRA contributions annually. But this is great information to keep in mind, to ensure you are maximizing your retirement account funding opportunities.
Because you can make an IRA contribution for tax year 2023 all the way to April 15, 2024 it is important to make sure you note to the investment company hosting your IRA account what year specifically your contribution is intended, especially if you want to get ahead and proactively fund your IRA within the current year.
If you fail to indicate the tax year for which your contribution applies, the custodian firm may automatically default to applying your contribution to the current year (and they will note exactly that to the IRS.)
Accordingly, be sure to write “2023 IRA contribution” or “2024 IRA contribution” on the memo line of your check, so that your contribution year is noted plainly and simply for your IRA account custodian. Additionally, always be sure to write your IRA account number on your check, to ensure your contribution is applied correctly. If you make your contribution electronically, double check that these details are present and noted correctly.
A person can open or contribute to a traditional IRA past age 72 as long as they have taxable income (*1).
And last, but not least, the deadline to take your 2024 Required Minimum Distribution (RMD) from your traditional IRAs is December 31, 2024.
- IRS.gov, July 5, 2023
- This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer or state-registered, or SEC-registered investment advisory firm. The opinions expressed and material provided here are for general information purposes and should not be considered solicitation for any security purchase or sale. Copyright 2023 FMG Suite.
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This blog is intended for general informational purposes, and should not be taken as strategy or advice by ATLAS Lifestyle Planning Group (ATLAS LPG). ATLAS LPG encourages all individuals to consult their financial professional about these or other matters which concern their personal finances or financial strategy. If you do not have a financial advisor, or feel you may benefit from seeking the advice of a different financial advisor, please do not hesitate to reach out directly to your ATLAS office, or contact us HERE. Your ATLAS LPG Team is always ready and happy to help, whatever your needs may be!
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