IRS Extends Contribution Deadlines for IRA, HSA and More
In addition to extending the filing deadline for Form 1040 from April 15, 2021, to May 17, 2021, the IRS has also extended the time for individuals to contribute to retirement and medical accounts. What the IRS did not change is the due date for estimated tax payments.
Retirement Accounts
If you have an Individual Retirement Account (IRA) or Roth IRA, the IRS confirmed individuals may still contribute to your IRA for the previous tax year through May 17th, which coincides with the extended 1040 tax filing deadline.
Medical Accounts
For individuals with Health Savings Accounts (HSAs), you also have until May 17th to max out on your 2020 contributions. For individuals, the max per year is $3,600 and for families, $7,200. For those age 55 and over, you may add an additional “catch-up” contribution of $1,000.
Reporting and Payment on 2020 Distributions
The time for reporting and payment of the 10% additional tax on amounts includible in gross income from 2020 distributions from retirement plans was also extended to May 17, 2021.
No Extension on Estimated Tax Payments
The April 15, 2021 deadline for estimated tax payments has not changed. Payments to the IRS must be made each quarter.
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Questions?
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