2024 Income Tax Payment Dates + Retirement Plan Deadlines

Regardless of your age, it is crucial to establish a robust financial strategy that incorporates saving for retirement. This article provides 2024 income tax payment dates to be aware of when initiating retirement planning for this year, as well as tactics to conclude your 2023 tax season. You still have time to open and fund some retirement and savings plans and have contributions count towards the 2023 tax year.

The information below applies to typical retirement accounts and self-directed retirement plans.

Income Tax Payment Dates in 2024

The IRS began accepting 2023 tax returns on January 29, 2024. Below are the income tax payment dates for income taxes in 2024.

    • April 15, 2024: Deadline to file your income taxes or an extension.

      • Please note: If you reside in Maine or Massachusetts, you have until April 17, 2024, to file, which is due to the Patriot’s Day and Emancipation Day holidays. Additionally, if you live in a federally declared disaster area, you may have additional time to file, but check with your tax professional for guidance.
    • October 15, 2024: Deadline to file taxes if you got an extension.

    • January 16, 2024: Due date for 2023 4Q estimated taxes.

2024 income tax payment dates for estimated payments A calculator, cup of coffee, and note pad on a desk with the words "tax planning" on it, indicating planning for income tax due dates.

1Q: April 15

2Q: June 17

3Q: September 16

4Q: January 15, 2025

Deadlines to Open and Fund Retirement Plans, ESAs, and HSAs

You still have time to open and/or make contributions to some retirement and savings plans and designate contributions to count towards the 2023 tax year. In some cases, this may lessen your income tax burden.

Traditional and Roth IRAs

Traditional and Roth IRAs are tax-sheltered plans for individuals to build their retirement savings. The primary contrast between these plans lies in how contributions are taxed: with a traditional IRA, contributions are made using pre-tax funds, resulting in taxable distributions during retirement. However, Roth IRA contributions are made with after-tax income, leading to tax-free distributions in retirement.

    • April 15, 2024:

The deadline to set up and fund traditional or Roth IRAs and make contributions count for 2023.

    • Contribution limits:

The 2023 limit is $6,500 a year, with an additional $1,000 catch-up contribution for those 50 and older. For 2024, contribution limit is $7,000, and the catch-up remains $1,000.

Simplified Employee Pension (SEP IRA)

A SEP IRA simplifies retirement savings for self-employed individuals or small businesses with limited employees. Its higher annual contribution limit surpasses that of other IRAs, enabling substantial savings and greater investment potential within the account.

    • April 15, 2024:

The deadline to open and contribute to a SEP IRA to count for 2023 taxes if you did not file an extension.

    • October 15, 2024:

This is the last day you can open and contribute to a SEP IRA to count towards your 2023 taxes.

    • Contribution limits:

Annual contributions for SEP IRAs are attractive. For the 2023 tax year, your contribution limit is the lesser of (up to) $66,000 or 25 percent of your compensation.

Beginning in 2024, the contribution limit is the lesser of $69,000 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 presents an option for small business owners or self-employed individuals. It allows you to make contributions as both an employer and employee, offering flexibility and greater benefits for retirement savings. Employee contributions are made through salary deferrals and must be deposited into the IRA within 30 days of the month the salary was earned.

    • October 1, 2024:

This is the deadline to set-up a SIMPLE IRA for 2024. (This plan does not offer an extended period to set up in 2024 and count towards 2023.)

    • Contributions:

Employees make pre-tax salary deferral contribution of up to $16,000 in 2024. Those who are 50 and older have an additional $3,500 catch-up contribution allowance.

Employers have flexibility in making contributions. They can match employees’ contributions (dollar for dollar) up to 3 percent of the employee’s annual compensation, which can help lower the business’s tax liability.  Or employers can make non-elective contributions of up to 2 percent of an employee’s compensation, even if the employee does not make contributions for themselves.

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

Solo 401(k) Plan

The solo 401(k) plan is ideal for individuals who work for themselves or own small businesses without full-time employees other than themselves, their spouses, or partners. Below are income tax payment dates, which are dependent on your business structure.

    • March 15, 2024:

The deadline for S-Corps, partnerships, and LLCs taxed as partnerships and S-Corps (plus extensions) to establish and make contributions to a solo-k for the 2023. If you file for an extension, September 16 is the latest you can file taxes.

    • April 15, 2024:

This is the deadline (including extensions) for sole proprietors, LLCs taxed as sole proprietors, and for C-Corps and LLCs taxed as C-Corps to establish and make contributions to count for 2023. October 15, 2024, is the latest date to file taxes if you got an extension.

    • Contributions:

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

Employers have until their corporate filing date (including extensions) to open and make contributions to a solo-k to count for 2023 tax returns.

In the past, if you had employees who are eligible to make contributions, the plan must have been established by 12/31 of the tax reporting year for them to make final salary deferrals for that year.

Beginning in 2023, the SECURE Act 2.0 implemented changes that 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.

In 2023, the employee elective salary deferral limit is $22,500. But if you’re 50 and older, you can make a catch-up contribution of $7,500. The employer profit-sharing contribution can be up to 25 percent of employee earnings. Combined employer/employee contributions cannot exceed $66,000 or $73,500 for those age 50 and older.

For 2024, the employee salary deferral is $23,000 and the catch-up contribution for people 50 and older remains $7,500. But employer contributions remain at up to 25 percent of the employee’s earnings. The combined employee plus employer contributions cannot exceed $69,000 or $76,500 for those 50 and over.

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 (RMDs) every year.

    • December 31, 2024:

This is the deadline to take your RMDs this year.

If you reached age 72 in 2023 or later, you are not required to take RMDs until you reach age 73, thanks to the SECURE Act 2.0 provisions. Individuals turning 73 in 2023 have until December 31, 2024, to take your initial RMD.

Health Savings Account (HSA)

While a health savings account (HSA) doesn’t function as a retirement plan, it serves as an exceptional tax-sheltered savings tool specifically crafted to cover eligible medical costs. You don’t have to deplete your retirement savings to pay for health care expenses. Eligibility for an HSA requires enrollment in a high-deductible health plan (HDHP) without additional health insurance coverage.

    • April 15, 2024:

This is the deadline (plus extensions) to contribute to an HSA for 2023. However, you have until April 15, 2025, to make contributions for the 2024 tax year.

Note: December 1 is the deadline to open an HDHP to make HSA contributions for the following year.

For example: December 1, 2023, was the deadline to establish your HDHP to make HSA contributions in 2024. However, if you missed that deadline, you have until December 1, 2024, to establish an HDHP to make HSA contributions in 2025.

    • Contributions:

For 2023, the limit for individuals is $3,850, and the limit for families is $7,750.

In 2024, the individual limit rose to $4,150 and to $8,300 for families. The catch-up contribution for 2023 and 2024 for those 55 and over is an additional $1,000.

Education Savings Account (ESA)

Education savings accounts are not retirement plans. However, they are an outstanding tax-advantaged option for saving towards your child’s educational expenses.

    • April 15, 2024:

This is the deadline to contribute to an ESA to count for the 2023 tax year.

    • Contributions:

The contribution limit for ESAs is the same for 2023 and 2024—$2,000.

Conclusion

By adhering to these income tax payment dates and retirement plan deadlines, you can take proactive steps towards achieving your retirement goals in 2024. However, it’s also good to consult with financial and tax professionals to tailor your retirement and tax planning around your specific needs and circumstances.

To learn more about the different types of self-directed retirement and savings plans, contact Advanta IRA today.

Additional resources on retirement plans:

Your Guide to an Alternative Investment Strategy for 2024

Why Consider a Self-Directed Health Savings Account?

7 Ways the SECURE Act 2.0 of 2022 Enriches Your Retirement Planning

What Is a Spousal IRA and How Does It Work?

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.