Forefront’s Friday Facts
2023 IRA Deadlines Are Approaching
What You Need to Know
Financially, many of us associate the spring with taxes—but we should also associate December with important Individual Retirement Account (IRA) deadlines. This year, like 2024, will see a few changes and distinctions.
Remember, this article is for informational purposes only. It is not a replacement for real-life advice, so consult your tax, legal, and accounting professionals for the most up-to-date information about IRA account deadlines and contribution strategies.
The deadline to take your Required Minimum Distribution from traditional IRAs is December 31, 2024.
The deadline for making 2023 annual contributions to a traditional IRA, Roth IRA, and certain other retirement accounts is April 15, 2024.1
Some people may not realize when they can make their IRA contribution. You can make a yearly IRA contribution between January 1 of the current year and April 15 of the next year. Accordingly, you can make your IRA contribution for 2024 any time from January 1, 2024, to April 15, 2025.1
A person can open or contribute to a Traditional IRA past age 72 as long as they have taxable income.2
If you make a 2023 IRA contribution in early 2024, you must tell the investment company hosting the IRA account for which year you contribute. If you fail to indicate the tax year that the contribution applies to, the custodian firm may make a default assumption that the contribution is for the current year (and note exactly that to the IRS).
So, write “2024 IRA contribution” or “2023 IRA contribution,” as applicable, in the memo area of your check, plainly and simply. Be sure to write your account number on the check. If you make your contribution electronically, double-check that these details are present.
Sources:
1. IRS.gov, November 22, 2023
https://www.irs.gov/newsroom/savers-credit-can-help-low-and-moderate-income-taxpayers-to-save-more-in-2024#:~:text=Contribution%20deadlines,Roth%20and%20traditional%20IRAs%20qualify.
2. IRS.gov, July 5, 2023
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits
3. This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer or state-registered, or SEC-registered investment advisory firm. The opinions expressed and material provided here are for general information purposes and should not be considered solicitation for any security purchase or sale. Copyright 2023 FMG Suite.
Here’s what we were reading this week:
- Americans are actually pretty happy with their finances:
- Americans overall have a surprising degree of satisfaction with their economic situation, according to findings from the Axios Vibes survey by The Harris Poll. Axios
- The curious case of the disappearing Hydrox cookies:
- Oreo, the Hydrox knockoff, has been accused of burying its competitor by scoring sweetheart deals with grocers. Does it wield too much power over smaller rivals? The Hustle
- Four Takeaways From Last Year’s Bestselling Video Games:
- Hogwarts Legacy is the first non-Rockstar game to beat Call of Duty in 15 years, and other takeaways from the 20 best selling games of 2023s. Bloomberg
Forefront Market Notes: January 16th
About Amit: I am a first generation American, the son of a working-class Indian family, and I lived through my parents’ struggle to find their place in this country, to put down roots that would sustain them as well as their children in a new land. As they encouraged me to excel in school and fostered my hobbies and interests, I was keenly aware of the dynamic between them. I understood that there was a difference between where they came from individually and where we were now. They worked hard in their individual capacities, but they weren’t always on the same page about financial issues – and that can make or break a family’s future. I didn’t know it at the time, but this laid the groundwork for my passion towards financial services and helping families succeed.