topic IRA in Get your taxes done using TurboTax

IRA

tractng — Wed, 05 Feb 2020 18:14:34 GMT

Hello,

Last year I started contributing to a traditional IRA in June. For the year (Jan. 1 to Dec 31), I made $1500 in contribution.

In Jan. 2020, I made $200 contribution for the month. I was working on my tax return using Turbotax and it looks like the contribution made in Jan. 2020 can be added to the amount on 2019 (as long as its before tax filing or April 15)? A little confused since I read somewhere its based on the calendar year.

I haven't filed the tax yet. I don't plan to make any more contribution towards the traditional IRA. I will start making contribution to the ROTH IRA since I am over the limit on the MAGI on single filer.

Thanks,

Re: IRA

macuser_22 — Wed, 05 Feb 2020 18:21:30 GMT

You have until the due date of the 2019 tax return (April 15) to contribute to a 2019 IRA. Your total 2019 contributions cannot exceed the 2019 contribution limits.

However, when you make a new 2019 contribution in 2020 you MUST instruct the account trustee at the time of the contribution if it is for 2019 or 2020. Without such instructions the trustee will probably default it to 2020. Your receipt for the contribution should indicate which year it will be applied to by the trustee. If in doubt ask the trustee which year they will report it for.

Re: IRA

tractng — Wed, 05 Feb 2020 18:40:57 GMT

Great!