IRA contribution following amended tax return

Home Fairmark Forum Retirement Savings and Benefits IRA contribution following amended tax return

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  • #3080
    Bruce1950
    Participant

    I think I know the answer to this, but its an interesting question I can’t seem to find the definitive answer to….

    Individual is filing single and for 2017 did not make a Roth contribution as his AGI exceeded the max allowable to contribute. However, in Jan 2019, he discovered that he had claimed income for 2017 that was not received until 2018, so he has amended his 2017 return and the new MAGI will allow for a Roth contribution. May he make the 2017 contribution now that he is eligible or is the April 15, 2018 deadline a hard deadline?

    Same case, but he made a TIRA contribution for 2017. After filing the amended return, can he recharacterize the 2017 TIRA to a RIRA even though its past Oct 15, 2018, or is this latest date also a hard deadline?

    Thanks

    BruceM

    #3081
    Alan S.
    Participant

    Bruce, the 2017 IRA contribution must be made by the usual deadlines or recharacterized by the usual deadline, so that 2017 space is lost. Of course, there is still a month to make a 2018 contribution, and plenty of time to recharacterize a 2018 contribution if the added 2018 income affects a contribution he has already made for 2018.

    #3083
    Bruce1950
    Participant

    Hi Alan
    As I thought. I just wasn’t sure if there wasn’t some PLR out there that allowed a late IRA contribution if an amended return was filed that changed the taxpayers eligiblility.

    Thanks
    BruceM

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