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Timely Tips: Tax-Time Deadline Dates for IRA Holders

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This year's tax deadline date is near (April 18th, 2017). If you're a self-directed IRA holder, you should know these deadline dates for the month of April that may affect your IRA plan. Read further to learn more about required minimum distributions, IRA, HSA and ESA contributions, excess removal and re-characterization, and a quick reminder about annual account statements:

Required Minimum Distributions (deadline date of April 1st)

Besides the Roth IRA, individuals who have a retirement plan account such as a Traditional, SEP and or SIMPLE IRA as well as an Individual 401(k) must start taking Required Minimum Distributions also known as RMDs once an individual turn age 70 ½.  Although RMDs are typically due by December 31st, the first year’s RMD may be delayed until April 1st of the year following the year the individual turns age 70 ½.  If an individual turned age 70 ½ in 2016 their deadline for their first year’s RMD is April 1st of 2017.

SEP Establishment Contributions (deadline date of April 18th)

Employers who are sole proprietors and partnerships have up until their tax return deadline not only to establish a SEP plan but also to fund a SEP plan they establish.  If a sole proprietor or partnership does not file for an extension, they must establish and fund the SEP plan for 2016 by April 18th 2017.

IRA, HSA and ESA Contributions (deadline date of April 18th)

Individual contributions to individual accounts such as IRAs, HSAs and ESAs must be made by an individual’s tax return due date not to include any extensions.  The individual’s tax return due date for 2016 is April 18th of 2017.

Excess Removal of IRA and HSA (deadline date of April 18th)

If an individual contributed more than they are allowed to an IRA or HSA, they are allowed to remove the excess contribution by their tax return due date plus extensions to avoid incurring an excess contribution penalty.  If the individual filed their tax return timely they will automatically have an extension to correct their excess contribution for an additional 6 months.

Annual Account Statement IRA Form 5498, 5498-ESA and 5498-SA

You will continue to receive reports from the firms where you have your tax-advantaged accounts. There’s nothing you have to do by these dates, but keep your eyes open for these 2015 statements:

  • Annual IRA Account statements sent by May 31th
  • Coverdell 5498-ESA statements should be received by May 2nd
  • HSA annual account statements should be received May 31st

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