IRS Reminder on IRA Deadlines for the 2024 Tax Year

The IRS has issued a reminder that the deadline for making an IRA contribution for 2025 is April 15, 2025 (the 2024 contribution limit is $7,000 (plus $1,000 if age 50 or over).  Filing extensions do not extend this contribution deadline.  Taxpayers must remove excess salary deferrals to retirement plans for 2024 by April 15.  If the taxpayer's individual salary deferrals exceed the limit for 2024, a corrective distribution of the excess deferral amount, plus earnings, must be taken by April 15, 2025.  When excess salary deferrals are withdrawn by April 15, the excess is taxed in the calendar year deferred, earnings are taxed in the year distributed and the amounts are not subject to 10% early distribution tax, 20% withholding, or spousal consent.  If the amount is not withdrawn by April 15, the excess deferral is taxed in the calendar year deferred and the year distributed, earnings are taxed in the year distributed and the amounts may be subject to 10% early distribution tax, 20% withholding, and spousal consent.  For more information on the rules governing elective deferrals, visit Tax Facts Online.  Read More: Link to Q3760.