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Yes, I shouldn't have waited but given my situation it was better to chance it then not do it at all. When I referring to postmarked that meant I went to the post office pay for postage with tracking had a receipt proving I mailed it and had memo the check for 2021 and a copy of the deposit slip.
That's not to say they couldn't have still put in 2022 but I would've had some recourse and as stated per my situation warranted. and I knew I would have to file an addendum and deal with the contributions in 2022 going into it.
To summarize it did work out picture attached below if the institution allows it you can mail(postmarked meaning stamped with the date by the USPS Clark and preferably with certified and or both tracking) a check on the 18th and it can be applied to the previous year
You have to ask the IRA plan administrator. Most will not credit your account until they have the funds in hand.
answering my own question I have since talked to tax professional as well as the bank(Charles Schwab) where is have the IRA as long as the check was postmarked on april 18 it can be applies to the previous year.
In my example I wanted to contribute money for 2021 tax. I was able to sign up for the account and mail it by the 18th and I applied for the 2021 tax year granted this may be different for different banking institutions but in my case it all worked out.
Just a warning though
OK....so It "might" work out if it actually gets postmarked the 18th. But you don't know yet if will be postmarked the 18th unless you mailed it early in the day, or got it in as Certified or Registered mail at the PO service counter. Things put in the box after the last mail pickup for that day may not get the 18th postmark.
@jordanlbailey wrote:
answering my own question I have since talked to tax professional as well as the bank(Charles Schwab) where is have the IRA as long as the check was postmarked on april 18 it can be applies to the previous year.
In my example I wanted to contribute money for 2021 tax. I was able to sign up for the account and mail it by the 18th and I applied for the 2021 tax year granted this may be different for different banking institutions but in my case it all worked out.
To you specifically, I suggest you double-check the transaction once it posts, and make sure CS really does it that way. If you didn't use certified mail, and CS posts the contribution for 2022, you likely have no recourse to complain, and no way to prove the postmark since it left your hands, and the IRS will treat it as a 2022 contribution, not 2021, no matter what they told you over the phone.
To anyone else reading this, please don't make contributions at the last minute, you really should allow 3 business days minimum for bank transfers and 10 days for mailed checks. If the broker records the contribution for the new year instead of the past year, you have almost no way of contesting that with the broker or the IRS.
Yes, I shouldn't have waited but given my situation it was better to chance it then not do it at all. When I referring to postmarked that meant I went to the post office pay for postage with tracking had a receipt proving I mailed it and had memo the check for 2021 and a copy of the deposit slip.
That's not to say they couldn't have still put in 2022 but I would've had some recourse and as stated per my situation warranted. and I knew I would have to file an addendum and deal with the contributions in 2022 going into it.
To summarize it did work out picture attached below if the institution allows it you can mail(postmarked meaning stamped with the date by the USPS Clark and preferably with certified and or both tracking) a check on the 18th and it can be applied to the previous year
It's up to the IRA custodian as to whether they will recognize the postmark date as the date of the contribution. Some will, some won't.
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