Deadline for 2019 IRA and HSA Contributions Extended – Did You Know?

The IRS has extended the deadline for making contributions to traditional and Roth IRAs, Health Savings Accounts (HSAs), and Archer Medical Savings Accounts (MSAs) that are credited to tax year 2019. Contributions must usually be made by the April 15 tax filing deadline in order to count toward the previous year. However, since the IRS extended the 2019 tax filing due date to July 15, 2020, the deadline for these contributions has changed to July 15 as well.

If you have not yet reached your 2019 IRA contribution limit ($6,000 for most taxpayers under age 50, up to $7,000 for taxpayers over 50 making “make-up” contributions), you may continue adding 2019 contributions until July 15. While the same is true for HSAs and MSAs, it is important to remember that your employer’s carry-over limit or grace period deadline might not have changed. Check with your company’s benefits department to make sure additional 2019 HSA or MSA contributions can actually be used to cover medical expenses before contributing.

If you made withdrawals from an IRA or other retirement account in 2019 that are subject to the 10% additional tax (such as early IRA withdrawals not covered by an exemption), the deadline for paying this tax has also been extended to July 15, 2020. A tax professional can help you determine whether any of your 2019 withdrawals require payment of the 10% additional tax.