2023 IRA Contribution Deadlines, Solo 401(k) Deadlines, and RMD Rules

With inflation and interest rates still on the rise, it’s more important than ever to create a solid financial plan that includes saving for retirement. Below are important IRA contribution deadlines, as well as those for solo 401(k)s, ESAs, and HSAs, and each plan’s annual limit.

You’ll also see a section on the new required minimum distribution (RMD) rules that explains the age you must begin taking them.

Understanding your IRA contribution deadlines and your annual contribution limits will help you build the retirement wealth you deserve. And, if you want to make a contribution to relieve your 2023 income tax burden, solo 401(k) and IRA contribution deadlines are extended if you filed an extension. So you still have time to contribute to some plans.

This information applies to conventional retirement accounts and self-directed retirement plans.

IRA Contribution Deadlines

Traditional and Roth IRAs

Traditional and Roth IRAs are plans designed for individuals to save for retirement. The main difference in these plans is that contributions to a traditional IRA are made with pre-tax dollars (meaning your distributions in retirement are taxed) and contributions to a Roth IRA are post-tax (so distributions when you retire are not taxed).

Traditional and Roth IRA contribution deadline:

April 18, 2023:

Deadline to set up and fund a traditional or Roth IRA and designate contributions to count for 2022. That date has passed, along with the opportunity, but you can open and fund a traditional and/or Roth account now to impact your 2023 tax liability.

April 15, 2024:

Deadline to open and fund an account to attribute to your 2023 tax return.

Traditional and Roth IRA contribution limits: 

The 2023 limit is $6,500 a year, with an additional $1,000 catch-up contribution if you’re 50 and older. 

Simplified Employee Pension (SEP IRA)

A SEP IRA makes saving for retirement easy for the self-employed or businesses with few employees. The annual contribution limit is higher than other IRAs, which allows significant savings and more capital in the account to invest.

SEP IRA contribution deadlines:

April 18, 2023:

The deadline to open and contribute to a SEP IRA to count for 2022 taxes unless you filed an extension.

October 16, 2023:

If you filed an extension, this is the last day you can open and contribute to a SEP IRA to count for 2022 tax returns.

SEP IRA contribution limits: 

Annual contributions for SEP IRAs are considerable. For 2022, you can contribute the lesser of (up to) $61,000 or 25 percent of your compensation.

Beginning in 2023, the contribution limit is the lesser of $66,000 or 25 percent of compensation. Thanks to the SECURE 2.0 Act of 2022, you’ll also be able to make both employer and employee contributions on a Roth basis.

Savings Incentive Match Plan for Employees (SIMPLE IRA)

The SIMPLE IRA is a great plan for small business owners or for those who are Image of bright blue sticky note on desk that says 401k and IRA contribution deadlines.self-employed. You can make contributions to a SIMPLE IRA as an employee and as an employer.

SIMPLE IRA deadlines:

October 1, 2023: Deadline to set up a plan to count for 2023. This plan does not offer an extended period to set up in 2023 and count towards 2022.

October 15, 2023: IRA contribution deadline to count towards your 2022 taxes if you filed an extension.

SIMPLE IRA contribution limits:

Employees make contributions of up to $15,500 in 2023 through pre-tax salary deferrals, with an additional $3,500 catch-up contribution for those 50 and older.

Employers can match employees’ contributions (dollar for dollar) up to 3 percent of the employee’s annual compensation, which can help lower your business tax liability. Instead of a match, employers can make non-elective contributions of up to 2 percent of an employee’s compensation, even if the employee does not contribute to their plans themselves.

Additionally, the SECURE 2.0 Act of 2022 makes it possible for employees to make Roth contributions into this account in 2023.

Solo 401(k) Plan Deadlines

The solo 401(k) plan, also called a solo-k, is perfect for self-employed people or for small business owners with no full-time employees other than themselves and their spouses or partners. The rules here are a bit more complex than IRA contribution deadlines depending on the type of entity you have.

For S-Corps, partnerships, or LLCs taxed as partnerships and S-Corps

Contribution deadlines:

March 15, 2023:

Initial deadline for contributions and to establish a solo 401(k) for 2022 unless you filed an extension.

September 15, 2023:

This is the latest you can open and/or contribute to your solo-k if you filed an extension.

For sole proprietors, LLCs taxed as sole proprietors, and for C-Corps and LLCs taxed as C-Corps

Contribution deadlines:

April 18, 2023:

Deadline for these entities to open and contribute to their plan to count for 2022 taxes unless you filed an extension.

October 15, 2023:

The latest you open and fund a solo-k if you got an extension.

 Solo 401(k) contribution limits:

You can make contributions to solo 401(k) plans as an employee and as an employer.

Employers have until their corporate filing date (including extensions) to establish and contribute to a solo-k to count for 2022 tax returns.

Before the recent enactment of the SECURE Act 2.0, if you have employees who are eligible to contribute, your plan must be established by 12/31 of the tax reporting year for them to make final salary deferrals for that year. But, beginning in 2023, the law has changed to accommodate employee contributions to plans sponsored by sole proprietors or single-member LLCs up until the date that the employee files their tax return. Since this provision is relatively new, we recommend consulting with your CPA to ensure proper planning to maximize both employee and employer contributions.

Your employee elective salary deferral contribution limit for 2022 is $20,500, with a catch-up contribution of $6,500 if you’re 50 or older). The employer profit-sharing contribution can be up to 25 percent of employee earnings. Total employer/employee contributions cannot exceed $61,000 or $67,500 for those 50 and over.

For 2023, the employee salary deferral increases to $22,500 and the catch-up for those 50 and older rises to $7,500. The employer contribution remains at up to 25 percent of employee earnings. The total of employee plus employer contributions cannot exceed $66,000 or $73,500 for those 50 and over.

Health Savings Account (HSA)

A health savings account is not a retirement plan, but they are incredible tax-sheltered savings plans designed to help you pay for qualified medical expenses. To participate in an HSA, you must have a high-deductible health plan (HDHP) and have no other health insurance in place.

HSA contribution deadlines:

April 18, 2023:

You have until April 18, 2023, (plus extensions) to make an HSA contribution count for 2022 and you have until April 15, 2024, to make contributions that count towards your 2023 income tax return.

Note: You must establish your HDHP by December 1 to make HSA contributions for the following year.

So, to make HSA contributions in 2023, your account should have been set up by December 1, 2022. If you missed that deadline, be sure to open one by December 1, 2023, to contribute in 2024.

 HSA contribution limits:

For 2022, individuals can contribute $3,650 and families can contribute $7,300, with a catch-up contribution of $1,000 for those 55 and older.

In 2023, individuals can contribute $3,850 and families can contribute $7,750. The catch-up contribution remains $1,000 for this year.

The catch-up contribution for those 55 and over is $1,000

Education Savings Account (ESA)

Education savings accounts aren’t retirement plans, either, but it is an excellent tax-sheltered account that allows you to save for your child’s education.

ESA contribution deadlines:

April 18, 2023:

This was the deadline to contribute to an ESA to count for 2022. This plan does not make allowances if you filed for an extension.

April 15, 2024:

The contribution deadline to make a contribution that counts towards your 2023 income tax return.

 ESA contribution limits:

Contribution limits for ESAs in 2023 cap at $2,000.

Deadline to Take Required Minimum Distributions from Retirement Plans

If you turned 72 in 2022 or earlier and own a traditional, SIMPLE or SEP IRA or a solo 401(k), you must take required minimum distributions every year.

December 29, 2023:

This is the deadline to take your RMDs from these plans for 2023. Normally, you have until December 31st, but this year the 31st falls on a Sunday.

If you turn 72 in 2023 or later, you don’t have to begin taking RMDs until you are 73 thanks to the provisions of the SECURE ACT 2.0 that was passed at the end of December of 2022. Those who turn 73 in 2023 have until December 31, 2024, to take your first RMD.

 

If you have questions about this article, IRA contribution deadlines, or want to learn about self-directed account types, please feel free to contact Advanta IRA today.

About Scott Maurer

Scott Maurer, Vice President of Sales for Advanta IRA, is a recognized expert in the field of self-directed IRAs. With a law degree from the University of Florida and as a designated Certified IRA Services Professional (CISP), Scott’s keen understanding of rules and regulations fuels his passion to educate others on the power of investing in alternative assets using self-directed IRAs. Scott is a frequent guest on retirement and investing webinars and podcasts, and he has shown thousands of individuals how to achieve financial freedom by teaching them how to use their retirement funds to invest in private placements, real estate, private lending, and more. Throughout his two decades in the industry, he has watched numerous unique investments unfold, giving him great perspective of what is possible when people take control of their retirement funds and investing decisions.