Determining The IRA Contribution Deadline
You can make your IRA contributions for a particular year up to April 15 which is the set deadline IRA contribution date. For tax year 2007, the IRA contribution deadline date is set on April 15 2008.
Bear in mind that tax-filing extensions do not apply to your IRA contributions. Your contributions must be deposited by your tax filing due date, which is usually on April 15.
Just like your tax return, a postmark date is considered timely, if you have sent your contribution in the mail by April 15, you have met the IRA contribution deadline date, even if your financial institution receives the contribution after April 15 (deadline IRA contribution).
However, if you are a soldier or a member of the armed forces who served in a combat zone i.e. Iraq and Afghanistan or provided qualifying service outside of a combat zone, you will receive an automatic extension in the IRA contribution deadline. The extension is usually extended 180 days after one of the following: • the last day you serve in a designated- combat zone • or completed your qualifying service outside a combat zone • or the last day you serve in a contingency operation in a combat zone • or the last day of any continuous qualified hospitalization for injury from service in either of the above. You must make sure your financial institution will know the year to which your contribution applies and ask them about their documentation requirements for contributions made during your extension period. If you deliver your IRA contribution from Jan 1 to April 15 (IRA contribution deadline), make sure to let your financial institution know the tax year to which the IRA contribution will be applied. Writing the tax year in the memo field of your check should be sufficient information for the financial institution. If you didn't provide this information, it could result in the contribution amount being applied to the wrong tax year. Another tip, make sure you meet the eligibility requirements and that you received eligible compensation for the year before you make your IRA contribution. To be definite that your contribution was deposited for the right tax year, check and examine your account statement for the month the contribution amount is deposited. If detected early financial institutions are more likely to correct these processing errors. And the most important, check with your tax and financial professional for assistance in determining whether contributing to your IRA or your having a particular IRA is a good financial decision or a wise investment for you. If an individual hasn't contributed funds to an IRA for a tax year, or if put in less than the maximum allowed. You can contribute to either a traditional or Roth IRA until the April 15 IRA contribution deadline date, for filing your tax return for a particular tax year, not including extensions. Let's say its January 2007, John has a maximum contribution limit of $4,000 and only placed $2,000 as contributions for tax year 2006. If he wants to contribute up to the limit, he has until April 15 2007, the IRA contribution deadline, to make his contributions.
But he must always be sure to tell his financial institution that his contribution is for 2006. Otherwise, that financial institution may report the contribution as intended for 2007 when they get his funds.
Ira Contribution
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