Tax Filing & IRA Contributions in a COVID World

Just a few helpful reminders regarding 2020 IRA Contributions
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Note: If you file your tax return prior to making your annual contribution, the IRS may require an amended return.

Maximum Annual Contributions (IRAs and Roth IRAs only):

  • $6,000 for tax year 2020 (Roth contributions may be less depending upon income. Please consult your CPA before making your contribution).
  • Age 50+: Catch-up contributions may be made up to an additional $1,000.

Important Reminders When Submitting Your Contributions:

  • Make the check payable to Charles Schwab & Co. + your name. Do not make your check payable to CWM.
  • Put the contribution year and account number on the memo line of the check. This is extremely important since we cannot assume that a contribution check is to be applied to the same contribution year in which it is received.
  • For guaranteed deposit, your contribution must be received by CWM no later than 3:00pm on Thursday, May 13th to ensure that the check will be processed and placed into your account by the IRS deadline. (For more details on IRA contribution rules, see IRS Publication 590-A).
  • Contributions can be set up to be transferred from an individual, joint, or trust account held at Schwab. If you are interested in this option you can contact us via phone (425) 778-6160 or via e-mail at info@CWMnw.com

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The 2021 tax filing deadline is Monday, May 17thAs the COVID-19 pandemic continues into 2021, and keeping in mind social distancing, shelter-in-place orders, closed offices and other limiting factors, it may be helpful to get your taxes done earlier than you would normally and make IRA and Roth IRA contributions sooner rather than later.

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If you have additional questions
about your IRA, Roth IRA, SEP IRA, or SIMPLE IRA contribution amounts, contact your CWM advisor or call the office at (425) 778-6160.

Comprehensive Wealth Management, LLC does not offer tax advice. Please consult your CPA for specific tax questions.

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