IRAs play an important role in helping you achieve your long-term financial goals and with the extension of tax season, this window of opportunity remains open.
On March 18, 2020, in response to the President’s COVID-19 Emergency Declaration, the Department of the Treasury and the Internal Revenue Service issued a Notice extending the normal Federal tax filing deadline from April 15 to July 15. In addition to extending the Federal filing deadline this notice also allows for:
- Tax deductible IRA contributions for 2019
- Tax deductible contributions to a Health Savings Account (HSA)
- Employer business contributions to qualified plans
- Employer set up and implementation of a Simplified Employee Pension Plan (SEP-IRA)
…up to the July 15 deadline.
... and that means
For 2020, your total contributions to all of your traditional and Roth IRAs cannot be more than:
- $6,000 ($7,000 if you're age 50 or older), or
- your taxable compensation for the year, if your compensation was less than this dollar limit.
Feel free to contact us if you have any questions.