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Key Retirement Planning Dates During 2012 Tax Season

For all Americans, it’s now 2012 tax season. As we gather our information and records to prepare our federal income taxes for 2012, here are some important dates that affect retirement plans.

If you own a business that is incorporated, and you have a SIMPLE IRA plan or a SEP (Simplified Employee Pension), your business’ deadline for making a contribution for 2012 is March 15, 2013. But, if your business filed for an extension, you will have up to that deadline to make the contribution. If you own a business that is not incorporated, for example you are a sole proprietor, your business’ tax filing deadline is April 15, 2013. If you get an extension to file your taxes, that will also extend your SIMPLE IRA plan or SEP funding deadline as well.

If you turned age 70 ½ in 2012 and have a traditional IRA, you must start taking required minimum distributions (RMDs) for that year, and every year going forward. If you took that RMD last year; great! But if you didn’t, you must take it by April 1, 2013 to avoid a 50% penalty from the IRS. Don’t miss that deadline by even one day, because if you do, the 50% penalty applies. Your RMD for 2013 is also due this year by December 31, 2013. If you didn’t take your 70 ½ year RMD last year, but instead waited until on or before April 1, 2013, both RMDs you take this year will be included in your 2013 income.

If you are thinking about making a prior year (2012) traditional or Roth IRA contribution this year, you must do so by April 15, 2013. Even if you get an extension for filing your 2012 tax return, that extension does not extend your IRA contribution deadline. It must be made by April 15, 2013.


- By Joe Cicchinelli and Jared Trexler

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