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The IRS Extends Additional Tax Deadlines
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What to know about your IRA, HSA, and more.
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Dear Friend,
Previously, the Internal Revenue Service (IRS) announced that the federal income tax filing due date for individuals for the 2020 tax year had been automatically extended from April 15, 2021, to May 17, 2021.1
More time for all. However, the IRS has also settled on May 17, 2021 as the deadline for contributions to individual retirement arrangements (IRAs and Roth IRAs), health savings accounts (HSAs), and Coverdell education savings accounts (Coverdell ESAs).2
No additional tax until May 17, 2021. Traditional IRAs and 401(k)s are examples of pre-tax investments. You can put off paying taxes on the contributions you make to these accounts until you start to take distributions. When you take distributions from these accounts, you may owe taxes on the withdrawal. Pre-tax investments are also called tax-deferred investments, as the invested assets can benefit from tax-deferred growth.3
What about estimated tax payments? Keep in mind that this does not alter the April 15, 2021, deadline for estimated tax payments; these payments are still due on April 15. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments.4
Sincerely,
Zach Taylor
Insurance Specialist
Lyndon Taylor, RFC, Lutcf
Financial Consultant
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Citations.
1. IRS.gov, March 17, 2021
2. IRS.gov, March 29, 2021
3. IRS.gov, March 29, 2021
4. IRS.gov, March 29, 2021
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