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By Theresa Fry, Senior Vice President and Manager, IRA’s and Retirement Planning

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The year 2019 may feel like a lifetime ago, but if you haven’t yet filed or paid your federal income taxes for 2019, that deadline will be here before you know it.  After the coronavirus reached pandemic status in March, one of the first announcements from the IRS was the extension of the 2019 federal income tax filing and payment deadlines to July 15, 2020.  They have also extended the first and second quarter 2020 estimated tax payments – typically due March 15 and June 15 – to July 15 as well.  This extension applies to individuals, trusts, estates and corporations.  Some states, but not all, also extended their income tax filing and payment deadlines to July 15.

Other Tax Deadlines Also Extended

In addition to income tax filing and payment deadlines, other deadlines were also extended for tax sensitive actions.  For retirement accounts such as IRAs, 401(k)s and other workplace retirement plans, actions that typically must be completed by April 15, were also extended to July 15.  This includes, but is not limited to:

  • Making 2019 traditional and Roth IRA contributions
  • Recharacterizing traditional and Roth IRA contributions (traditional to Roth, or Roth to traditional)
  • Employer contributions to retirement plans, such as matching and non-elective contributions to SEP, SIMPLE, 401(k), 403(b), profit sharing or other ERISA workplace retirement plans – unless the business has filed for an extension
  • Correcting excess contributions
  • Repaying qualified retirement plan loans that were offset

Some Rollover Deadlines Extended

Some rollovers were given a special extension on the 60-day rule to July 15.  If your 60-day rollover deadline was between April 1 and July 15, you now have until July 15 to complete the rollover.  Therefore, any distribution you received between February 1 and May 15 will avoid income taxation and be considered a timely rollover if it is completed by July 15.  Keep in mind, however, the one-rollover-per-12-months rule still applies to distributions from an IRA.  Therefore, if you have already completed a 60-day rollover from an IRA in the past 12 months, you are not able to rollover another distribution despite the extension of the 60-day rollover period.

If you need to complete any of these time sensitive actions for your Benjamin F. Edwards retirement account, please contact your financial advisor. Your tax advisor can provide additional information about your state tax deadlines.

Benjamin F. Edwards & Co. does not provide tax advice, therefore it is also important to consult with your tax professional for additional guidance tailored to your specific situation.

June 16, 2020 |