Advanced Underwriting Consultants

Ask the Experts – March 4

Ask the Experts!

The professionals at Advanced Underwriting Consultants (AUC) answer the tax questions posed by producers.  Here’s the question of the day.

Question: Even though 2013 has ended and my client has already filed his income tax return for 2013, can he still make a contribution to a Roth IRA for 2013?

Answer: Yes, he can generally make contributions until April 15.

According to the IRS in Publication 590:

You can make contributions to a Roth IRA for a year at any time during the year or by the due date of your return for that year (not including extensions).

Therefore, most taxpayers can make a contribution for 2013 by April 15, 2014.

If a contribution is made between January 1 and April 15, the taxpayer should tell the sponsor for which year the contribution is made (i.e. the current year or the previous year). If the taxpayer does not specify which year, the sponsor can assume, and report to the IRS, that the contribution is for the current year.

Contributions to Roth IRAs are not reported on an individual’s tax return, so there should be no need for your client to amend his return.

Have a question for the professionals at AUC?  Feel welcome to submit it by email.  We may post your question and the answer as the question of the day.