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Tax Tip Tuesdays: There’s Still Time to Contribute to Your IRAs

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

It’s not too late! You can still make a contribution to your traditional or Roth IRA. Regardless of when you file your income tax return, April 15, 2019 is the deadline for the 2018 tax year for most people (see below for details). For example, if you apply for an extension of time and file your tax return later in the year, your traditional and Roth IRA contributions must still be made by April 15th. Roth IRA contributions are not tax deductible and do not have to be reported on your income tax return. 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.

If you are self-employed and sponsor a SEP IRA, your 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 April 15th. 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 2018.

Some individuals will get extra time to file and make IRA contributions this year. If you reside in Maine or Massachusetts, you’ll have a few extra days due to Patriots’ Day falling on Monday, April 15th, and Emancipation Day falling on Tuesday, April 16th.

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

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.