John Geraci, Managing Partner, and Wayne Karacek, Partner and Co-Managing Director of Tax, discuss retirement plan contributions. There are different deadlines for funding and retirement plan contributions, and filing for an extension can give you more time to pay retirement plan contributions and get tax deductions.
For individual taxpayers, even those who are self-employed, retirement plan contributions can be made to IRAs and are due by April 15th. There is the option to file for an extension as a self-employed individual taxpayer, however, in the case of an IRA, contributions cannot be extended and are still due by April 15th.
Corporations and partnerships, depending on the type of entity, have different due dates, but the retirement plan contributions are always due with the return. Partnerships and S-corps are due March 15th. C-corps are due April 15th. Extensions are available for business taxpayers and make it possible to pay retirement contributions and get a deduction on the current tax year. The same guidelines are in place regardless of cash-basis or accrual-basis status.
At LGA, we look at the big picture when considering retirement planning and taxes. Filing for a tax extension can create an advantage for retirement plans. Our professionals can help you stay up to speed with the various due dates on retirement plan contributions.
