The IRS recently announced that the filing and payment deadlines for federal income tax returns has been extended from April 15 to July 15 in response to the ongoing Coronavirus. Taxpayers do not need to be sick, quarantined or otherwise impacted by the virus to qualify for this extension, and no additional forms or extensions need to be filed.
The State of Nebraska is also following suit, extending their filing and payment deadlines to July 15. If you’re located outside of Nebraska, please check with your state’s Department of Revenue to determine if the deadlines have changed.
What this means for your retirement savings:
The extended filing deadline of July 15 also means that the deadline for making contributions to your IRA for 2019 is extended. This gives investors an extra 90 days to make additional contributions. The maximum contribution to an IRA (both traditional and Roth) is $6,000 for 2019 and 2020. Individuals over the age of 50 can make an additional $1,000 catch-up contribution.
If you took an early distribution from your IRA or other retirement account and owe a 10% tax penalty, the due date for reporting and payment has been extended to July 15.
Please visit www.irs.gov for additional guidance.
If you have questions or concerns about your retirement accounts, please give us a call.
Sources:
https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers
This is meant for educational purposes only. LPL Financial does not offer tax advice. Please consult with a professional regarding your personal situation prior to making any financial related decisions. (03/20)