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Daily Update COVID-19 From the Business Accountants at Wouch Maloney

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?

Should you have questions about this topic, or any other topics related to your personal or business situation, please contact us at any time.

DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.