Question

Opening a traditional IRA now and deduct for 2019?

Forum|Forum|6 years ago
April 21, 2020
1 reply
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Hi, I'm thinking about opening a traditional IRA account for my mom. She's 66 and just got laid off last month and will effectively retire. It looks to me that we have until July of this year to open a traditional IRA account for her now and claim the contribution as deduction off her 2019 income. This is the first time we open any kind of retirement account so I just want to make sure I do it correctly.

So I understand that one of the requirements is that when we put the money in, we have to indicate to the broker that we are making contribution for 2019 and not 2020. Besides that, do we need to wait for any kind of paperwork from the broker for tax purpose? It looks like we only need to put in the tax form how much we will contribute by the deadline.

Many thanks for reading my question!

Critter

Employee

Correct ... it needs to be a 2019 contribution and she can file now ... she has until 7/15 to actually make the contribution.

Hal_Al

Employee

For others reading this (in the future), the July 15, 2020 date is for 2019 tax year only, under the CARES act (Corona Virus). For other years the cut off is April 15.