This time of year, we tend to receive more questions about investments as families prepare their tax returns. Here are some of the recent FAQs we have answered about IRAs:
What is the RMD age now?
You must begin taking your RMD by April 1st of the year you turn 73 (for those born between 1951 and 1959) since the passing of the SECURE Act.
What is the deadline for IRA or Roth IRA contributions?
Contributions for prior year need to be made by Monday, April 18, 2023. You have up to the tax filing deadline to contribute. Be sure to specify it is a prior year or 2022 contribution (between January – April the custodian needs to be directed on how to apply).
If I contributed too much to an IRA, how do I correct that?
If when you file your taxes, you realize you made too large of a contribution for 2022, fix the mistake by removing the excess contribution and declaring the amount as earnings on your tax return. Otherwise, there is a 6% penalty on the amount each year until fixed. If you have already filed your return, file an amended return by the October extension deadline.
The Bottom Line:
Rules for retirement accounts are complicated and change often. For help, talk to a Financial Advisor at WPC for clarification. Our team is ready to help!
