Now that April 15, 2013 has passed, and the anxiety of filing our 2012 tax returns is over for most of us, some of you may be wondering if it’s possible to make an IRA contribution for 2012. The answer generally is no, but there are some exceptions.
The general rule is that deadline for making an IRA contribution for the prior year is your deadline for filing your federal income tax return. However, if you filed for an extension to file your taxes, that does not extend your IRA funding deadline. Basically, the IRA deadline is your un-extended tax filing deadline. So, for 2012, the deadline was Monday, April 15, 2013, even if you have an extension to file your taxes for 2012.
There are few exceptions to the April 15 rule. If you mailed your 2012 IRA contribution by April 15, 2013, but it was received by the IRA custodian after April 15, it’s considered timely as long as it was postmarked by April 15. The postmark can be from the U.S. Postal Service or one of three private delivery service companies, Federal Express, United Parcel Service, and DHL.
The deadline for making a 2012 IRA contribution for certain individuals serving in the military can be after April 15, 2013. If you are in the military and served in a combat zone, you may have more time to make an IRA contribution for 2012. If you served in a combat zone between January 1 and April 15, you have a minimum of 180 days after you left the combat zone to make an IRA contribution for the year. See IRS Publication 3, Armed Forces Tax Guide, for more information.
The funding deadline for making SEP or employer SIMPLE IRA contributions for 2012 can be after April 15, 2013. If the employer, not the employee, had an extension to file their taxes for 2012, the SEP and employer SIMPLE IRA contribution deadline is the employer’s tax filing deadline, plus extensions.
-By Joe Cicchinelli and Jared Trexler
Smart money/Coming Soon
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Q:
You recently said that a 401(k) distribution would add to your MAGI (modified adjusted gross income) for the purpose of determining if you are subject to the 3.8% healthcare surtax. What about Roth IRA distributions? Would they also count towards your total MAGI income for surtax purposes?
Thanks
A:
IRA distributions are exempt from the 3.8% surtax, but taxable distributions from IRAs can push income over the threshold amount, causing other investment income to be subject to the surtax. Because Roth IRA distributions are generally tax-free, they don’t count towards your total MAGI.
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1 comments:
Does the extension for 2012 contributions also apply to Solo 401k's as well? Husband and wife are sole owners of an LLC, each has a solo 401k and have filed an extension.
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