I want to make the maximum contribution to my 2005 IRA. Am I correct in thinking that Monday April 17th is the last day I can contribute? And if so, will a check postmarked that day suffice, or would the check have to be physically at the brokers office on the 17th? Thanks! (And yes, I will plan this better for 2006)
snipped-for-privacy@yahoo.com (Julie) posted:
The contribution must have been _made_ by April 17, 2006, in order to qualify as a deductible for the 2005 tax year (per Pub 590). I would recommend you consult your broker/trustee, to see what their policy is on "crediting" checks. Some won't do so until the check has been "cleared." "Constructive receipt" is defined differently by indidivual banks, brokers, etc. -- and may also be dependent on the relationship with the individual. (For example, my main bank also has a Securities operation, where I have an account -- and I am therefore qualified as a "Premier" account holder, and extended some extra recognition ... which _might_ include accepting a check from my checking account as "paid" for purposes of adding to an IRA on a given date.) Bill
Make sure your check is received and credited by the broker by COB on the 17th.
it seems contributions to a tradional, roth, or education ira must be made by the due date of the return, without extensions if it is a sep ira the deadline for making the contribution is the deadline of the return, including filing extensions, which could be as late as october 15th (or the next business day if the 15th falls on a weekend) of the year following the tax year for which the contribution is being made
I've read the replies which are correct, but I'd add "it depends on the broker"; "If you want to make a 2005 IRA contribution, please mail your check to: Charles Schwab PO Box 628291 Orlando, FL 32862-8291 for east coast residents and PO Box 52114 Phoenix, AZ 85072-2114 for west coast residents Please make sure to include 2005 I.R.A. contribution on the front of your check and make sure your envelope is postmarked by April 17th." It appears from this quote that Schwab will credit the deposit based on the postmark. This runs a bit counter intuitive, so I guess the real answer becomes "check with your broker". I'd also mention that 4/17 is a state holiday in Massachusetts, so we have until 4/18 as our Tax day. JOE
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