If you have a retirement plan account, please see important deadlines below in 2019:
March 15 – Employer Contribution Deadline for Partnerships and S-Corporations
Income tax returns for calendar-year businesses structured as a partnership or S-corporations are due March 15. Businesses generally have until the date of their filed income tax returns to make employer contributions to retirement plans. Therefore, unless the business tax return is extended, an employer contribution for the 2018 tax year is due March 15, 2019.
April 1 – Deadline for First Required Minimum Distribution (RMD)
Unfortunately, you cannot keep retirement funds in your account forever. The IRS requires you to begin making withdrawals from your retirement plan account (other than Roth IRA accounts) when you turn age 70½. Each year, the RMDs must be made by December 31. However, for the first year that you turn 70½, you have until April 1 of the following year to take your first distribution. Therefore, if you turned 70½ in 2018, you’ll need to take a distribution by April 1, 2019. The penalty for missing an RMD is 50% of the missed payment, so you should not wait until the last minute. There are also sometimes planning opportunities for RMDs, which you should discuss with your tax or financial adviser in advance.
April 15 – IRA Contribution Deadline
Contributions to your traditional IRA or Roth IRA must be made by April 15 (whether your tax return is extended or not). For 2019, you can contribute up to $6,000 ($7,000 if you are age 50 or older) or your taxable compensation for the year, whichever is less. Because eligibility and deduction limits apply based on your income level and whether you participate in another retirement plan, it might be wise to wait until your 2018 tax return is drafted before you contribute. For example, if your income is too high, you may not receive a tax benefit from a traditional IRA contribution, or you may not be eligible to contribute to a Roth IRA.
April 15 – Employer Contribution Deadline for C-Corporations and Self-Employed Individuals
A calendar-year C-corporation deducting an employer contribution for the 2018 plan year must fund the contribution by April 15, 2019, unless the company’s tax return is extended. If you are self-employed and want to make an “employer” contribution to your retirement plan, you must also fund the contribution by the due date of your tax return, including extensions.
September 16 – Extended Employer Contribution Deadline for Partnerships and S-Corporations
Calendar-year partnerships and S-corporations that extended their tax returns have until this date to fund employer contributions to their retirement plans.
October 15 – Extended Employer Contribution Deadline for C-Corporations and Self-Employed Individuals
Calendar-year C-corporations and self-employed individuals that extended their tax returns have until this date to fund employer contributions to their retirement plans.
December 31 – Deadline to Contribute to 401(k) Plan and Other Defined Contribution Plans
Employee contributions to 401(k) plans (and other plans that require salary reductions or elective deferrals) must be made by the end of the year. For 2019, you can contribute up to $19,000 or 100% of your compensation, whichever is less. If the plan allows, participants age 50 or over may contribute up to $6,000 in additional catch-up contributions. Note that your particular plan may have additional limits, and additional IRS limits may apply.
December 31 – Annual Required Minimum Distribution (RMD) Deadline
If you are age 70½ or older, remember to take your required minimum distribution by the end of the year.
If you have questions about retirement plan deadlines or limits, or would like help planning for retirement, please feel free to contact us.