Search

IRA Deadlines Are Approaching



Here is what you need to know


Provided by Derek Cockrell


Financially, many of us associate the spring with taxes – but we should also associate December with important IRA deadlines. This year, like 2020, will see a few changes and distinctions.


December 31, 2021, is the deadline to take your Required Minimum Distribution (RMD) from certain individual retirement accounts.


“If you are making a 2021 IRA contribution in early 2022, you must tell the investment company hosting the IRA account for which year you are contributing.”

May 17, 2021, is the deadline for making 2020 annual contributions to a traditional IRA, Roth IRA, and certain other retirement accounts. This extension from the traditional April 15 deadline follows an extension of the traditional tax deadlines.1

Some people may not realize when they can make their IRA contribution. You can make a yearly IRA contribution between January 1 of the current year and April 15 of the next year. Accordingly, you can make your IRA contribution for 2021 any time from January 1, 2021 to April 15, 2022.2

Thanks to the SECURE Act, a person can open or contribute to a Traditional IRA past age 70½ as long as they have taxable income.


If you are making a 2021 IRA contribution in early 2022, you must tell the investment company hosting the IRA account for which year you are contributing. If you fail to indicate the tax year that the contribution applies to, the custodian firm may make a default assumption that the contribution is for the current year (and note exactly that to the I.R.S.).

So, write “2022 IRA contribution” or “2021 IRA contribution,” as applicable, in the memo area of your check, plainly and simply. Be sure to write your account number on the check. If you make your contribution electronically, double-check that these details are communicated.


Derek Cockrell may be reached at (575) 769-3965 x101 or Derek@ContemporaryBenefitsLLC.com

www.ContemporaryBenefitsLLC.com

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.


Citations

1. irs.gov, March 29, 2021

2. irs.gov, November 10, 2020

0 views0 comments

Recent Posts

See All

Contact

  • Black Facebook Icon
  • LinkedIn
  • Black Twitter Icon

Mailing Address:

PO Box 1083

Clovis, NM  88102

Supervisory Office:

6000 Uptown Blvd NE, Ste. 100

Albuquerque, NM  87110

​​

Tel: 575-769-3965

Fax: 575-769-1489

derek@contemporarybenefitsllc.com

marli@contemporarybenefitsllc.com

jessica@contemporarybenefitsllc.com

Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Contemporary Benefits, LLC, and Cambridge are not affiliated. 

This is not an offer of securities in any jurisdiction, nor is it specifically directed to a resident of any jurisdiction.  As with any security, request a prospectus from your Registered Representative.  Read it carefully before you invest or send money.  A Representative from Contemporary Benefits, LLC will contact you to provide requested information.  Investment Professionals of Cambridge Investment Research, Inc. do not provide tax or legal advice in their roles as Registered Representatives.  Please consult your tax advisor or attorney regarding your situation.  Securities products are limited to residents of New Mexico and Texas.

© Pages, Images, and Videos Copyright Protected
Broker check transparent.png