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IRS Extends IRA Contribution Deadline

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What You Need to Know

  • The notice follows the earlier IRS announcement that the overall tax filing deadline has been extended to May 17.
  • Deadlines also are extended for Health Savings Accounts and Archer Medical Savings Accounts.
  • The normal April 15 deadline to claim a refund has been extended, as well.

The Internal Revenue Service said Monday that individuals have until May 17 to make 2020 contributions to their individual retirement accounts (IRAs and Roth IRAs), as well as health savings accounts (HSAs).

This announcement follows the IRS notice of March 17 that extended the 2020 federal income tax filing date for individuals from April 15 to May 17.

Notice 2021-21 provides details on additional tax deadlines that have been postponed.

Deadlines also were extended to May 17 for Archer Medical Savings Accounts (Archer MSAs), and Coverdell education savings accounts (Coverdell ESAs).

In addition, the announcement automatically postpones to May 17 “the time for reporting and payment of the 10% additional tax on amounts includible in gross income from 2020 distributions from IRAs or workplace-based retirement plans,” the IRS explained.

Notice 2021-21 also pushes back the due date for Form 5498 series returns related to these accounts to June 30, the IRS said.

Plus, the notice states that the normal April 15 deadline to claim a refund also has been extended to May 17.

“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” IRS Commissioner Chuck Rettig said in a statement earlier this month.

“Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds,” Retting explained. “Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to.”

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