Reminder on Year-End Retirement Plan Deadlines

While it may seem difficult to believe, the end of the 2026 tax year is now in sight. Taxpayers who discovered that they made excess IRA contributions for the 2025 tax year should be reminded that the deadline to correct the mistake is their extended tax filing deadline (this year, October 15, 2026). Taxpayers must remove the excess contribution plus any earnings attributed to the contribution (or loss) to avoid the 6% penalty. Some businesses with extended filing deadlines may also be able to establish and fund a SEP IRA before October 15. The SEP contribution limits for 2025 were 25% of up to $350,000 of compensation, but no greater than $70,000. Taxpayers who are at least 73 must take their required minimum distributions from retirement accounts by December 31. Taxpayers who have inherited retirement accounts should also be reminded of their distribution obligations (noting that non-eligible designated beneficiaries subject to the ten-year rule are now subject to annual distribution requirements). Taxpayers who are charitably inclined have until December 31 to make a qualified charitable distribution. For more information on the rules governing QCDs, visit Tax Facts Online. Read More: Link to Q3997.