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

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It’s not too late! You can still make a contribution to your traditional or Roth IRA. Individuals get a little extra time this year, too. The IRS recently announced an extension for individual taxpayers to file 2020 federal income tax returns and make federal tax payments to May 17, 2021. This is now the deadline for making 2020 IRA contributions for most people (see below for details). Although applying for your own extension of time to file your tax return does not extend your IRA contribution deadline, when the IRS extends it automatically for everyone, it does.

Roth IRA contributions are not tax deductible and do not have to be reported on your income tax return, regardless of when you file. Traditional IRA contributions – in certain circumstances – are tax deductible and must be reported on your income tax return whether you take the deduction, or you file Form 8606 to report your contributions as non-deductible. Both traditional and Roth IRA contributions require earned income but are not limited by your age. Contributions can continue as long as you are working even if you are also taking required minimum distributions.

If you are self-employed and sponsor a SEP IRA, SEP contributions provide a tax deduction for your business. If you do not file for an extension, your SEP contributions also must be made by May 17. However, unlike traditional and Roth IRAs, if you file for an extension of time to complete your business tax return, you will have until the extended deadline to make any SEP contributions for 2020.

Some individuals will get even more time to file and make IRA contributions this year. If you reside in a declared federal disaster area due to the February winter storms in Texas, Louisiana or Oklahoma, you will have until June 15, 2021 to file returns, make tax payments (including estimated tax payments) and make IRA contributions.

Check with your tax preparer for details and to confirm your tax filing deadline.


Benjamin F. Edwards does not provide legal or tax advice, therefore it is also important to consult with your legal and tax professionals for additional guidance tailored to your specific situation.

March 23, 2021 |