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Deadlines and Contribution Limits for 2017 Tax Year

What are the Deadlines to make Contributions for 2018 to IRAs and QRPs?

Traditional IRAs, Roth IRAs, and Education Savings Accounts – Must be established and funded by April 17, 2018, for tax year 2017.   Note: Tax filing extensions do not extend the deadline for making 2017 IRA and ESA contributions.

SEP and SIMPLE IRAs – SEP IRA contributions for tax year 2017 can be established and funded by the employer’s tax filing dates, including extensions.  SEP IRA participants are allowed to make regular Traditional IRA contributions to their SEP IRAs, in addition to receiving SEP employer and SARSEP deferral contributions to the same account.  Contributions representing prior-year Traditional IRA contribution made to SEP accounts are due April 17, 2018.  To ensure proper processing, those deposits must be clearly marked “2017 IRA Contribution.” New SIMPLE IRAs must have been established by October 1, 2017, to accept contributions for the 2017 tax year.   SIMPLE IRAs for 2017 must have been established by October 1, 2017 for the 2017 tax year.

Qualified Retirement Plans (QRPs) – QRPs maintained on a calendar-year basis must have been established by December 31, 2017, to accept contributions for the 2017 tax year.  Even though a QRP must be established by the last day of the plan’s tax year, you may make prior-year contributions up to the tax-filing deadline, including extensions.

What is the Proper Documentation for a contribution made near the deadline?

Prior-year IRA contributions received by mail or express service after April 17, 2018, will be verified for an April 17, 2018, postmark or express-service receipt date.  All envelopes which contain IRA contributions, SEP plan documents, new account documents, adoption agreements, must show a postmark or express-service receipt date of April 17, 2018, or before.  IRA and ESA contributions will be accepted for a short time after the deadline, provided a proper postmark is included.  Prior-year IRA contributions delivered after April 17, 2018, without a verified postmark or express-service receipt date cannot be processed as prior-year contributions.  There are no exceptions permitted. Make sure to indicate which tax year your contribution is intended. Checks received without the applicable year clearly indicated on the check or on a contribution form will be deposited as current-year contributions.

2017 Contribution Limits:

IRA and Roth IRA – $5,500 ($1000 catch-up if 50+, total $6,500)

SEP IRA – $54,000

SIMPLE IRA  – Max. eligible employee contribution is $12,500 ($3000 catch-up age 50+, total $15,500)

401(k), 403(b), 457

    • Employee Deferral  – $18,000
    • Employee Catch-up  –  $6,000
    • Total 401K Contribution Limit – $54,000
    • Total 401K Contribution  with Catch-up – $60,000

As always, please contact your tax professional if you have specific concerns about your tax situation.

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