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What You Need to Know

What You Need to Know

December 27, 2023

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 penalty for not taking it is severe (50%) so do it NOW. 

The deadline for making 2023 annual contributions to a traditional IRA, Roth IRA, and most other retirement accounts is April 15, 2024.   

Some people may not realize when they can make their IRA contribution. You can make your 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, 2024.1  

A person can open or contribute to a Traditional IRA past age 72 as long as they have taxable compensation.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 are contributing. If you fail to indicate the tax year that your 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 IRA account number on the check. If you make your contribution electronically, double-check that these details are present.

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 Citations

  1. IRS.gov, November 22, 2023
  2. IRS.gov, July 5, 2023
  3. This content is developed from sources believed to provide accurate information. This information is not intended as tax or legal advice. It may not be used to avoid any federal tax penalties. Please consult legal or tax professionals for specific information regarding your 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 VANCO Financial Group. Opinions expressed and material herein provided are for general information only and may not be considered a solicitation for any security purchase or sale. Copyright 2023 FMG Suite.