More Time to Get Money into an IRA: What the Tax Filing Extension Means for You

Posted In: COVID-19 Market Update

There are very few things the recent COVID-19 pandemic has not affected. The need to continue paying our taxes, of course, is one of them.

 

Thankfully, with so many of us experiencing a loss in pay or a reduction of work, the Internal Revenue Service (IRS) has extended the tax filing (and payment) deadline from April 15 to July 15. That said, Treasury Secretary Steven Mnuchin did urge people that are expecting refunds to file now, in order to “get their money.”

 

It’s not yet clear whether those who anticipate estimated tax payments for 2020, which are normally due in April and June, will still be obligated to make 2020 payments. It is also unclear how 2019 tax extensions will work with the new July 15 date (i.e. whether the standard October 15 date will still hold, or if a full six-month extension will still be available, which could push extension due dates out to January 2021 for the 2019 tax year). In addition, questions remain of whether all states will follow suit and adjust their own tax deadlines to conform.

 

Most importantly, from an opportunity standpoint, is that the IRS also released a notice clarifying that the 2019 IRA contribution deadline has also been extended to July 15.

 

With the “W” recovery trajectory a likelihood, now is the time to make 2019 and 2020 Traditional and Roth IRA contributions. Getting those dollars working for you in a tax-deferred manner, today, might prove to be one of the best investment decisions you’ve ever made.

 

In a time of uncertainty throughout the nation, it is important to remember that all of our financial decisions are stewardship decisions. Ambassador Advisors is here to help you taking advantage of the extended contribution date, coordinate with your tax preparer and navigate new information, as it arises.

 

Source: https://www.politico.com/news/2020/03/20/trump-administration-moves-tax-day-to-july-15-138756

 

Any opinions expressed in this forum are not the opinion or view of American Portfolios Financial Services, Inc. (APFS) or American Portfolios Advisors, Inc.(APA) and have not been reviewed by the firm for completeness or accuracy. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purposes of avoiding penalties that may be imposed by law. Each tax payer should seek tax, legal or accounting advice from a tax professional based on his/her individual circumstances.
This material is for informational purposes only. Neither APFS nor its Representatives provide tax, legal or accounting advice. Please consult your own tax, legal or accounting professional before making any decisions. Information has been obtained from sources believed to be reliable and are subject to change without notification. The information presented is provided for informational purposes only and not to be construed as a recommendation or solicitation. Investors must make their own determination as to the appropriateness of an investment or strategy based on their specific investment objectives, financial status and risk tolerance. Past performance is not an indication of future results. Investments involve risk and the possible loss of principal.

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