Tax Day is April 17th this year, which means you have until that date to file your taxes and contribute to most retirement accounts. Even though 2017 has ended, it’s not too late to meet your contribution goals. Keep in mind that distributions must be made by December 31st of the year reporting (2017) to qualify. Traditional IRAs require minimum distributions for anyone 70.5 or older, and inherited IRAs may require certain distribution amounts regardless of your age.
If you need an extension for filing your taxes, extension requests must be submitted by April 17th as well. We do recommend that you file your taxes or request an extension before April 17th to ensure that paperwork is submitted correctly and there are no errors that could cause a delay. Let’s take a look at the due dates and contribution limits for each type of self-directed IRA.
For the 2017 tax year, the contribution deadline is April 17, 2018. The contribution limit for a Traditional IRA is $5,500, or $6,500 if age 50 or older. If you met the contribution limit before you filed taxes but have contributed more since January 1st, you can count these extra funds for the 2018 tax year. If you aren’t covered by a retirement plan from work, you can deduct your 2017 Traditional IRA contributions from your 2017 taxes.
Just like with Traditional IRAs, the contribution limit and deadline are the same for a Roth IRA. There are income limitations for contribution eligibility, however, and you won’t be able to deduct your Roth IRA contributions from your taxes.
SEP and SIMPLE IRA
The contribution deadline for a SEP IRA is April 17, 2018 and is December 31, 2017/April 15, 2017 for a SIMPLE IRA. Employers are the only ones eligible to make a SEP IRA contribution, and they can only contribute up to 25% of the employee’s income or $54,000, whichever one is lower. Employees can contribute up to $12,500 (or $15,500 if 50 or older) to their SIMPLE IRA. Employees must make their contributions by December 31st, and the employer who is matching must make the matching contributions by April 15th.
401(k) and Solo(k)
The deadline for 401(k) and Solo(k) contributions is December 31st of the reporting year (2017). Plan owners can contribute up to $18,000 for the 2017 year, or $24,000 if 50 or older.
Health Savings Account (HSA)
The deadline for a 2017 HSA is April 17, 2018. For individuals, the annual contribution limit for 2017 is $3,400 ($4,400 for ages 55-65). Families can contribute up to $6,750 ($7,750 for ages 55-65). Those older than 65 must meet certain qualifications in order to contribute to an HSA.
Coverdell Educational Savings Account (CESA)
The 2017 contribution deadline for a CESA is April 17, 2018. These accounts have a contribution limit of $2,000 and hold income requirements to qualify. Many savers use these accounts to help cover higher education expenses for children or grandchildren and save their retirement plan money strictly for retirement expenses.