IRS Extends Due Date for 2019 Individual Retirement Account (IRA) Contributions, SEPs and HSAs
The IRS’ delay of the April 15 deadline to July 15, 2020 has also extended the due date to make IRA contributions for 2019 to the same date. IRA contributions are generally due by the due date of the tax return for the year the contribution is made (without extension). For example, an IRA contribution for 2018 was due April 15, 2019 (no extensions). For 2019 IRA contributions however, the due date for contributions is July 15, 2020.
If you are going to make a 2019 IRA contribution after April 15, 2020 but before the July 15, 2020, you should make sure that your custodian correctly marks the contribution as a 2019 rather than 2020 contribution. The financial institutions may have their internal systems set up to automatically post an IRA contribution received after April 15, 2020 as a 2020 contribution.
Simplified Employee Pensions (SEPs)
Generally, SEP contributions are due on the due date of the individual tax return for the year the contribution is made, however SEP contributions CAN be extended by filing an individual tax extension. Since the individual filing deadline has been moved to July 15, 2020, this will be the due date for a 2019 SEP contribution unless an extension is filed to request additional time after July 15, 2020 to fund the contribution.
Health Savings Accounts (HSAs)
HSA contributions for 2019 are also due in reference to the due date of the return for the year the contribution is made. So, for a 2019 contribution, the due date for a deductible HSA contribution will also be July 15, 2020. Like the post 4/15 IRA contributions, you should make sure that your HSA custodian posts the contribution as a 2019 rather than 2020 contribution.
If you have any questions or concerns, please contact your Maillie LLP representative via phone or email.