But what about the 2023 tax year?
The Internal Revenue Service (IRS) recently announced that the deadline to make contributions to a 401K plan for the 2023 tax year will be extended to April 30, 2023. This provides an additional 15 days for taxpayers to make retirement contributions and take advantage of potential tax savings.
The extension is good news for taxpayers who need an extra 15 days to make their contributions. The extra time gives taxpayers more flexibility to save for retirement without worrying about missing the deadline. Additionally, it could be a boon for taxpayers who are working with a CPA or financial planner, since they may have more time to review their plans and make sure their contributions are allocated correctly.
In addition to the extra 15 days, the April 30 deadline also allows taxpayers to make contributions that would otherwise not be allowed under the April 15 deadline. For instance, IRA contributions and Roth IRA conversions can be made until April 30 instead of April 15.
The extra 15 days also provide a way to reduce taxes for those who contribute to a 401K before the April deadline. Contributions made before the deadline are applied toward the previous tax year, while contributions made after the deadline are applied toward the current tax year. This means that taxpayers who contribute before April 30 can claim their contributions on their 2023 taxes instead of waiting until their 2024 return.
The extended deadline also provides an opportunity to save more for retirement. Those who can squeeze in an extra 15 days of 401K contributions can shelter even more of their income from taxes while also maximizing their retirement savings.
Overall, the extended deadline is welcome news for taxpayers who are trying to save for retirement. It gives taxpayers more time to make sure their 401K contributions are properly invested and allocated, and it also provides a chance to reduce taxes and save more money for retirement. With the extended deadline, taxpayers now have until April 30, 2023 to make their retirement contributions – so now is the perfect time to start planning.
Article Created by A.I.