Contributions
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 2022 any time from January 1, 2022 to April 15, 2023.1
A person can open or contribute to a Traditional IRA past age 70½ as long as they have taxable income.
Contribution Reminder
If you are making a previous year IRA contribution early in the next year, 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 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 I.R.S.).
For example: Write “2023 IRA contribution” or “2022 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 communicated.
Withdrawals
Financially, many of us associate the spring with taxes – but we should also associate December with important (individual retirement accounts) IRA deadlines. December 31, 2022, is the deadline to withdraw your Required Minimum Distribution (RMD) from certain IRAs if you’re over age 72. For accounts under our management, we take care of this to ensure clients avoid the hefty IRS penalty.
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Important Disclosures:
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
Citation: 1. irs.gov, November 5, 2021