Author Topic: Question on 2016 Roth Contributions in 2017  (Read 1782 times)

GerryS

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Question on 2016 Roth Contributions in 2017
« on: December 22, 2016, 05:37:37 PM »
Hi everyone...
My wife and I have not contributed to 2016 Roth yet, because we were unsure of whether we could do it direct this year. We'll be under the MAGI limits for 2016. The plan is to contribute for 2016 in 2017. I know the deadline is tax day, but what happens if you file before then, say mid February? Does your deadline to contribute 2016 dollars move up? I know it's a basic question, but thanks in advance for the clarification.

Spork

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Re: Question on 2016 Roth Contributions in 2017
« Reply #1 on: December 22, 2016, 05:42:31 PM »
Hi everyone...
My wife and I have not contributed to 2016 Roth yet, because we were unsure of whether we could do it direct this year. We'll be under the MAGI limits for 2016. The plan is to contribute for 2016 in 2017. I know the deadline is tax day, but what happens if you file before then, say mid February? Does your deadline to contribute 2016 dollars move up? I know it's a basic question, but thanks in advance for the clarification.

I am not an accountant, but I think not.  It shouldn't change your taxes, since Roth is post tax.  And even if it did, you could file a 1040X and amend your return.

seattlecyclone

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Re: Question on 2016 Roth Contributions in 2017
« Reply #2 on: December 22, 2016, 06:20:15 PM »
It's based on the due date of your return. If you were doing deductible contributions then you would want to make that before you file your return so you can claim the deduction, but since you don't actually report Roth contributions anywhere you can feel free to contribute after you file.

GerryS

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Re: Question on 2016 Roth Contributions in 2017
« Reply #3 on: December 23, 2016, 12:48:05 AM »
It's based on the due date of your return. If you were doing deductible contributions then you would want to make that before you file your return so you can claim the deduction, but since you don't actually report Roth contributions anywhere you can feel free to contribute after you file.

Thanks for clarifying! Makes planning a lot easier.

SeattleCPA

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Re: Question on 2016 Roth Contributions in 2017
« Reply #4 on: December 23, 2016, 05:58:41 AM »
Just to there's no misunderstanding, here's the precise language from the following IRS webpage:

What is the deadline to make contributions?

Your tax return filing deadline (not including extensions). For example, you can make 2016 IRA contributions until April 18, 2017.

https://www.irs.gov/retirement-plans/traditional-and-roth-iras