Tax Tip: Make Your IRA Contributions On Time

Tax Tip: Make Your IRA Contributions On Time

Editor's Note: This article is part of our 2013 Tax Tips series. Robert Flach is an expert with almost 40 years of experience as a tax professional and also blogs as The Wandering Tax Pro.

NEW YORK (MainStreet) — April 15 is not just the deadline for filing your tax return and paying your taxes – it is also the deadline for making a traditional or Roth IRA contribution. You can submit Form 4868 to extend the time to file your tax return, but you cannot extend the time to make your 2012 IRA contribution.

See Also: What Happens in Your IRA Stays in Your IRA

You can extend the time to make a 2012 contribution to most self-employed pension plans, like a SEP, by filing for an extension. But, again, you cannot extend the time to make your 2012 IRA contribution.

If you claimed a deduction for a contribution to an IRA on your 2012 Form 1040, make sure your contribution is in the account by Monday!

It is important when depositing money to your IRA that you identify the tax year for which the contribution is being made – on the check and on any accompanying payment voucher or coupon. When you receive your account statement check to see the payment has been applied to the correct year.

Your IRA trustee sends the IRS a record of your contribution – if it is applied to the wrong year you might get a balance due notice from Uncle Sam down the road.