Self-Directed IRA Contribution Due Dates

You have until April 18, 2017 to make the deadline (or file an extension) for submitting your income taxes to the IRS. You also have until that date to open and/or contribute to a few retirement plans if you want those contributions to count on 2016’s tax returns.

Know the Contribution Deadlines for Your AccountIf you’re lagging behind in your retirement planning efforts, you still have time to take some steps to get that momentum going. Just because 2016 ended on the last day of December doesn’t mean that you can’t still take advantage of the benefits of opening and making contributions to the plans listed below.

Traditional IRAs

You have until April 18, 2017, to open and/or make contributions to a traditional IRA. The maximum contribution you can make is $5500 per year, with a catch-up allowance of an additional $1000 if you’re age 50 or older. Contributions are deductible on your tax return for the 2016 reporting year, or you can earmark it to apply towards your 2017 return.

Roth IRAs

These retirement plans have the same contribution limits and new account opening deadlines as traditional IRAs. However, the contributions are not tax-deductible. You must meet the income requirements to participate in this plan.

Simplified Employee Pension Plans (SEP IRAs)

SEP IRAs can be opened and funded on any day before you pay taxes for the year in which you wish the contribution to count. So, if you file your 2016 taxes on or before April 18, 2017 you can make the cut. However, if you file an extension—you have until the date you must file that (no later than October 15, 2017) to open and/or make contributions to an existing SEP IRA.

Health Savings Plans (HSAs)

You have until April 18, 2017 to open and/or contribute to a health savings plan.

While these are not retirement plans, HSAs are becoming more widely used to supplement retirement income. Many individuals are establishing these accounts to use for qualified medical expenses, which comes in handy as you enter retirement and face rising health care costs. The money in this account can be used for health care and funds from your retirement plan can be used for other costs of living. You can make tax-deductible contributions to an HSA. There requirements you must meet in order to participate in an HSA. Find them here.

So, whether you use self-directed retirement accounts or not, these deadlines apply to the above plans. Hopefully, you’ve already maxed out your contributions for 2016, but if you haven’t at least you’ve got a little bit of time to make that date.

If you have questions about this article and want to learn more about alternative investments in your self-directed IRA, call us at (800) 425-0653 or send us a message.

About Jack Callahan

Jack proudly earned his bachelor’s degree in finance and multinational business from Florida State University and his law degree from the University of Florida College of Law. He established Advanta IRA in 2003 and has steadily nurtured and grown the company and the team every year since. Prior to founding Advanta IRA, Jack delivered specialized counsel to real estate investors, small business owners, and real estate professionals on tax, legal and financial matters. As an industry expert, Jack is a frequent speaker on self-directed retirement plans. He is an accredited continuing education instructor for the Florida and Georgia Bar Associations, Florida and Georgia Real Estate Commissions, and The American Institute of Certified Public Accountants.