5 ms·

What about prior year contributions? Those normally have an April 15th deadline too. I’m not sure how much I’m going to contribute until I finish my taxes and

What about prior year contributions? Those normally have an April 15th deadline too. I’m not sure how much I’m going to contribute until I finish my taxes and run the numbers.

toomuchtodo 7y ago
I would still plan on making any contributions to tax sheltered retirement accounts by the April 15th deadline until the Treasury and IRS state otherwise.
- garmaine 7y ago
  The point is I don't know if it is financially a good idea or not (because: reasons) until I finish my taxes. So no extension for me :(
  - toomuchtodo 7y ago
    You can file for the extension without filing your taxes. If it is a Roth IRA, you can remove the contributions at anytime penalty free (if you decide you didn't want to contribute the full $6000 amount for 2019). If it's a traditional IRA contribution, there is some complexity unfortunately. Also some complexity if you're at an income level where you're doing a "backdoor Roth", where you fully fund the IRA and then immediately convert to a Roth.
    - servercobra 7y ago
      How does that work if you're over the income limit for Roth? I imagine a decent percent of HN is over that limit if single (and an even larger for traditional).
      - toomuchtodo 7y ago
        https://www.thebalance.com/what-to-do-if-you-contributed-too-much-to-your-roth-ira-3192888 https://www.thebalance.com/what-to-do-if-you-contributed-too... (Excess Roth Contribution) https://www.nerdwallet.com/blog/investing/backdoor-roth-ira-high-income-how-to-guide/ https://www.nerdwallet.com/blog/investing/backdoor-roth-ira-... (Backdoor Roth IRA HowTo)
    - garmaine 7y ago
      In my case it's a SEP-IRA, which makes it significantly more complex. But the other factor is that for cashflow reasons I'd have to sell assets to make the contribution and take the capital gains tax (or maybe a loss... ugh) on that sale, which can't be reversed later. As to whether this makes financial sense, it depends on if I have an underpayment penalty, which I'd have to finish my taxes to figure out... So yeah, it's complicated. For reasons.
      - deleted 7y ago
        [deleted]
      - toomuchtodo 7y ago
        Edge cases suck. Sorry.
  - servercobra 7y ago
    Same. I won't know whether I'm under the cutoff for various contributions until I finish my taxes.

What about prior year contributions? Those normally have an April 15th deadline too. I’m not sure how much I’m going to contribute until I finish my taxes and run the numbers.

toomuchtodo 7y ago

I would still plan on making any contributions to tax sheltered retirement accounts by the April 15th deadline until the Treasury and IRS state otherwise.

garmaine 7y ago
The point is I don't know if it is financially a good idea or not (because: reasons) until I finish my taxes. So no extension for me :(
- toomuchtodo 7y ago
  You can file for the extension without filing your taxes. If it is a Roth IRA, you can remove the contributions at anytime penalty free (if you decide you didn't want to contribute the full $6000 amount for 2019). If it's a traditional IRA contribution, there is some complexity unfortunately. Also some complexity if you're at an income level where you're doing a "backdoor Roth", where you fully fund the IRA and then immediately convert to a Roth.
  - servercobra 7y ago
    How does that work if you're over the income limit for Roth? I imagine a decent percent of HN is over that limit if single (and an even larger for traditional).
    - toomuchtodo 7y ago
      https://www.thebalance.com/what-to-do-if-you-contributed-too-much-to-your-roth-ira-3192888 https://www.thebalance.com/what-to-do-if-you-contributed-too... (Excess Roth Contribution) https://www.nerdwallet.com/blog/investing/backdoor-roth-ira-high-income-how-to-guide/ https://www.nerdwallet.com/blog/investing/backdoor-roth-ira-... (Backdoor Roth IRA HowTo)
  - garmaine 7y ago
    In my case it's a SEP-IRA, which makes it significantly more complex. But the other factor is that for cashflow reasons I'd have to sell assets to make the contribution and take the capital gains tax (or maybe a loss... ugh) on that sale, which can't be reversed later. As to whether this makes financial sense, it depends on if I have an underpayment penalty, which I'd have to finish my taxes to figure out... So yeah, it's complicated. For reasons.
    - deleted 7y ago
      [deleted]
    - toomuchtodo 7y ago
      Edge cases suck. Sorry.
- servercobra 7y ago
  Same. I won't know whether I'm under the cutoff for various contributions until I finish my taxes.