2 Retirement Account Deadlines Extended Due to Coronavirus

Couple with savings
Photo by Andrey_Popov / Shutterstock.com

Tax Day has been pushed back in full, with the deadlines for both filing your 2019 return and paying any taxes you owe for 2019 extended to July 15 due to the coronavirus crisis.

This means several deadlines associated with Tax Day also are bumped back to July 15, the IRS clarified recently. They include some deadlines for tax-advantaged accounts such as retirement accounts.

Some retirement deadlines extended

The following two deadlines for the 2019 tax year are now July 15:

  • Deadline for contributing to an IRA: The base contribution limit for the 2019 tax year is $6,000, with savers who are 50 or older able to make an additional contribution of $1,000.
  • Deadline for paying the 10% penalty on individual retirement account (IRA) or workplace retirement plan withdrawals that are subject to that penalty: To learn about this penalty, check out “Beware These 3 Tax Penalties on Retirement Accounts.”

One retirement deadline unclear

The IRS’ recent clarification does not address the deadline for withdrawing excess IRA contributions for tax year 2019, and any money earned on the excess contributions, to avoid owing a 6% annual penalty.

I recently talked to two IRS spokespersons about this, but neither could tell me for certain whether the deadline to withdraw excess IRA contributions is April 15 or July 15.

So, if you happen to have stashed too much in your IRA for 2019 (here are the contribution limits), consider playing it safe and withdrawing the excess by April 15 if at all possible.

Other deadlines extended

The following deadlines for 2019 are also now July 15:

  • Deadline for contributing to health savings accounts (HSAs)
  • Deadline for contributing to Archer medical savings accounts (Archer MSAs)

Should you take advantage of extended tax deadlines?

As we recently reported, there’s good reason not to wait until July to file your tax return, at least if you expect a refund: The sooner you file, the sooner you stand to receive your refund.

If you have yet to file, check out “How to Get Your Taxes Done Absolutely Free.”

Similarly, there’s good reason not to wait until July to contribute to a retirement account or most any other type of savings account: The sooner you deposit money in such an account, the more time it will have to grow.

Find the right financial adviser

Finding a financial adviser you can trust doesn't have to be hard. A great place to start is with SmartAsset's free financial adviser matching tool, which connects you with up to three qualified financial advisers in five minutes. Each adviser is vetted by SmartAsset and is legally required to act in your best interests.

If you're ready to be matched with local advisers who will help you reach your financial goals, get started now.

Read Next
13 Smart Tricks to Organize Every Room of Your Home
13 Smart Tricks to Organize Every Room of Your Home

Get your household organized with these brilliant and inexpensive tricks.

19 Things You Should Never Buy at a Grocery Store
19 Things You Should Never Buy at a Grocery Store

These household necessities are overpriced at the grocery store. Get them cheaper at these places instead.

How to Buy a Refrigerator, Step by Step
How to Buy a Refrigerator, Step by Step

Here’s how I got the perfect appliance at the perfect price.

6 Things That Are ‘Free’ With Medicare
6 Things That Are ‘Free’ With Medicare

These services could save you money and help prevent costly health problems.

3 Costly Social Security Mistakes That Women Make
3 Costly Social Security Mistakes That Women Make

Women face unique challenges when planning for retirement and making these mistakes can result in a skimpier retirement.

View this page without ads

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

Get Started

Most Popular
Will I Get My Ex-Husband’s Social Security When He Dies?
Will I Get My Ex-Husband’s Social Security When He Dies?

Two factors determine how much money is coming to you.

7 Ways to Boost Your Credit Score Fast
7 Ways to Boost Your Credit Score Fast

Your financial security might soon depend upon the strength of your credit score.

21 Things You Should Always Buy at a Dollar Store
21 Things You Should Always Buy at a Dollar Store

Dollar stores have great bargains on these familiar purchases. Yes, even pregnancy tests.

13 Brilliant Bulk-Buy Items on Amazon
13 Brilliant Bulk-Buy Items on Amazon

Every household should have these products on hand. Buying them in bulk on Amazon saves you cash.

6 Reasons I Will Never Trust Suze Orman
6 Reasons I Will Never Trust Suze Orman

Beware: The self-proclaimed personal finance expert has a track record that suggests more sizzle than steak.

This Type of Social Security Benefit Is Often Overlooked
This Type of Social Security Benefit Is Often Overlooked

The Social Security Administration is not helping certain people get money to which they are entitled, a report says.

Getting These 2 Shots Could Reduce Your Risk of Dementia
Getting These 2 Shots Could Reduce Your Risk of Dementia

These vaccines may lower the risk of Alzheimer’s disease by up to 40%.

9 Everyday Problems You Can Solve With Vaseline
9 Everyday Problems You Can Solve With Vaseline

Forget expensive specialty products. Good ol’ petroleum jelly can address many common annoyances.

America’s Most Reliable Appliance Brand Is a Surprise
America’s Most Reliable Appliance Brand Is a Surprise

Have you heard of this appliance manufacturer?

16 Amazon Purchases That We Are Loving Right Now
16 Amazon Purchases That We Are Loving Right Now

These practical products make everyday life a little easier.

19 Purchases That Buyers Almost Always Regret
19 Purchases That Buyers Almost Always Regret

Think twice before buying these things.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

These jobs pay more than the typical job in the U.S. — and no bachelor’s degree is required.

8 of the Worst Things to Buy at a Dollar Store
8 of the Worst Things to Buy at a Dollar Store

Not everything sold at dollar stores is a great bargain or a safe purchase. Here’s our list of products to avoid.

Homeowners Say These 2 Kitchen Appliance Brands Are Best
Homeowners Say These 2 Kitchen Appliance Brands Are Best

One brand takes five of the top honors, while another ranks highest in three categories.

41 Things You Should Never Buy
41 Things You Should Never Buy

Some purchases are just plain dumb. Give yourself — and your budget — a break. Don’t spend money on this stuff.

9 Indestructible Products That Are Worth the Price
9 Indestructible Products That Are Worth the Price

If you’re willing to pay a little more for these products, you may never have to shop for another again.

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.

Is a Second Stimulus Check Still Coming?
Is a Second Stimulus Check Still Coming?

The status of another round of direct payments to taxpayers is a mix of good and bad news.

5 Household Disinfectants That Can Destroy the Coronavirus
5 Household Disinfectants That Can Destroy the Coronavirus

You likely already have some of these products at home.

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.