2 Key Deadlines for Retirement Plans Are Almost Here

Photo by pinkomelet / Shutterstock.com

Tax Day itself isn’t the only deadline of income tax filing season.

Deadlines related to certain types of retirement plans also are looming, as the Internal Revenue Service recently reminded us.

We detail these deadlines below, but first let’s revisit Tax Day. Just in case you missed the memo, federal income taxes for 2016 are due on April 18, rather than the usual deadline of April 15.

IRA contributions

The deadline for making individual retirement account (IRA) contributions for 2016 is April 18.

This means that if you have or want to open a traditional or Roth IRA, you have until then to take advantage of IRS contribution limits for 2016. For tax year 2016 as well as 2017, younger taxpayers can contribute up to $5,500. If you’re 50 or older, you can contribute $6,500.

Contributions to traditional IRAs are generally tax-deductible. Making a contribution before April 18 will help you not only maximize your retirement nest egg, but likely reduce your 2016 tax bill.

Additionally, contributing to either a traditional or Roth IRA might qualify you for the Saver’s Credit, which can also reduce your taxes. To learn more about this tax break for lower-income folks, check out “Tax Hacks 2017: Don’t Miss These 16 Often-Overlooked Tax Breaks.”

Confused about the two IRA types? Check out “Ask Stacy: Which Is Better — a Traditional or Roth Retirement Plan?

Excess IRA contribution withdrawals

The deadline for withdrawing excess IRA contributions for 2016 is the due date of your tax return, including extensions.

This means that if you contributed more than the IRS allows to IRA accounts for 2016 — the $5,500 or $6,500 cap mentioned above — you have until your tax return due date to withdraw the excess amount from your IRAs.

Otherwise, Uncle Sam will penalize you — to the annual tune of 6 percent of the excess amount left in your IRAs.

Have you taken advantage of an IRA? Let us know below or over on our Facebook page.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
6 Investing Tools That Help You Diversify
6 Investing Tools That Help You Diversify

Here’s how you can lend to startup businesses, fund social causes or get in on investments once available only to the very rich.

How to Prepare Your Finances for Retirement in 7 Steps
How to Prepare Your Finances for Retirement in 7 Steps

Here is how to get your finances in shape for your golden years, one step at a time.

8 Ways to Snag Extra Savings at Walmart
8 Ways to Snag Extra Savings at Walmart

Are you aware of all these ways to boost your savings in Walmart stores and at Walmart.com?

Here’s the Average Retirement Age in Your State
Here’s the Average Retirement Age in Your State

Are you on track to retire at the same age as most residents of your state?

13 Small Gadgets Under $20 That Make Life Better
13 Small Gadgets Under $20 That Make Life Better

These inexpensive electronics will make your day-to-day life a little easier — and happier.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
7 Kirkland Signature Items to Avoid at Costco
7 Kirkland Signature Items to Avoid at Costco

Even if it seems you save a bundle buying Costco’s Kirkland Signature brand products, they may not be the bargain they appear to be.

How to Buy Gas At Costco Without a Membership
How to Buy Gas At Costco Without a Membership

The warehouse club often has some of the cheapest gas in town. Here’s how you can get it as a nonmember.

10 Things to Stop Buying If You Want a Clutter-Free Home
10 Things to Stop Buying If You Want a Clutter-Free Home

If you like to keep things simple, avoid these purchases.

If You Find This Thrift Shopping, Buy It
If You Find This Thrift Shopping, Buy It

Vacuums from this brand can last a half-century, if not longer — and they’re hot on the resale market.

A Simple Way to Silence Robocalls Today
A Simple Way to Silence Robocalls Today

A few steps can keep your phone from ringing when a spammer calls.

This Company Makes the Best Tires in America
This Company Makes the Best Tires in America

Driver satisfaction with tires is at an all-time high, but one brand stands out.

Can I Switch to Spousal Social Security Benefits When My Ex Dies?
Can I Switch to Spousal Social Security Benefits When My Ex Dies?

Knowing when to claim can help you maximize benefits.

36 Things That Will Be Obsolete Soon
36 Things That Will Be Obsolete Soon

The writing is on the wall for dozens of things we have grown up with.

This Health Issue Can Hint at Dementia Years in Advance
This Health Issue Can Hint at Dementia Years in Advance

One type of pain is especially associated with cognitive decline.

8 Things You Should Always Buy on Amazon
8 Things You Should Always Buy on Amazon

The giant retailer shines when it comes to these things, from basics to hard-to-find specialty goods.

Medicare Will Not Cover These 6 Medical Costs
Medicare Will Not Cover These 6 Medical Costs

Don’t let these health care expenses catch you off guard in retirement.

8 Federal Income Tax Breaks for Homeowners
8 Federal Income Tax Breaks for Homeowners

Some of these deductions and credits are available to a wide swath of homeowners.

5 Ways to Get Amazon Prime for Free
5 Ways to Get Amazon Prime for Free

Hesitant to drop $119 a year on an Amazon Prime membership? Here’s how to get it for free.

5 Ways to Fill Your Pantry With Free Food
5 Ways to Fill Your Pantry With Free Food

Anyone can take advantage of these resources.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

10 Types of Retirement Income That Are Not Taxable
10 Types of Retirement Income That Are Not Taxable

There are lots of things Uncle Sam can’t touch — so long as you play by the rules.

6 Reasons You Should Stop Hiding Cash at Home
6 Reasons You Should Stop Hiding Cash at Home

Stashing money around the house is anything but harmless.

5 Products You Should Never Buy Generic
5 Products You Should Never Buy Generic

Sometimes the brand-name version is clearly superior.

17 Surprising Things You Can Sell for Extra Money
17 Surprising Things You Can Sell for Extra Money

You probably don’t realize these items are worth decent cash.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.