We recently opened a Rollover IRA for my wife (former TRS) and I learned I can use up to $6k of my post tax income to contribute to her pre-tax IRA. I've gone on TurboTax and entered the info as if her 2019 IRA was fully funded which increases our return.

Since I have until April 15th to contribute to her 2019 IRA, I was thinking I'd file the taxes as if I did already contribute the full $6k and then use the tax return to fund it (if the return is delayed, I'll be able to fund it normally with my income prior to 4/15).

Good idea, bad idea, ******ed idea?

If I'm reading this right you want to file your 2019 taxes then when you get the refund take that money and use it to make a 2019 IRA contribution.

IRS won't allow. Also doesn't make sense because you already filed your taxes.

You could use it to make a 2020 contribution.

nactownag said:

---

If I'm reading this right you want to file your 2019 taxes then when you get the refund take that money and use it to make a 2019 IRA contribution.

IRS won't allow. Also doesn't make sense because you already filed your taxes.

You could use it to make a 2020 contribution.

---

Is the rule for 2019 contribution that you have until April 15 no matter what, or you have until the filing of taxes to contribute?

It's April 15 or when you file. Whichever comes first.

30wedge said:

---

A lot of misinformation on this thread! It isn't whichever comes first nor is it fraud to file the return prior to funding the IRA.

You can file your return, claiming the IRA deduction, and then fund the IRA on or before the filing deadline (April 15th unless that date falls on a weekend).

If, for some reason, you fail to fund it timely, then you would be obligated to amend the return and pay the tax.

---

Correct answer

Wow.. read nactown response and got really confused! Glad someone stepped in to clarify that's not correct! This only applies to things like SEP contributions when extensions are involved.. As far as I know.

My understanding, which freaks a lot of people out because of timing of tax form, is the form 5498 is prepared and submitted to tax payer and IRS after tax filing deadline. This form tells the IRS of any contributions made for the prior tax year. All the IRS is looking for is that nothing was claimed that want actually done or vice versa. People get nervous when they get that form well after tax deadline thinking they should've done something with it.

Never heard they pay attention to the sequence of events, wouldn't make much sense.

So yes, OP, you can do what you are planning for.

I will admit I must have been mistaken on this!
Sorry!!!

cjsag94 said:

---

Wow.. read nactown response and got really confused! Glad someone stepped in to clarify that's not correct! This only applies to things like SEP contributions when extensions are involved.. As far as I know.

My understanding, which freaks a lot of people out because of timing of tax form, is the form 5498 is prepared and submitted to tax payer and IRS after tax filing deadline. This form tells the IRS of any contributions made for the prior tax year. All the IRS is looking for is that nothing was claimed that want actually done or vice versa. People get nervous when they get that form well after tax deadline thinking they should've done something with it.

Never heard they pay attention to the sequence of events, wouldn't make much sense.

So yes, OP, you can do what you are planning for.

---

yes the 5498 confuses a lot of people. The bottom line is, the IRS does not know the timing unless they were to audit you. They have nothing reported to them that tells of the timing. The IRA Fiduciary reports that 5498 on April 16, and it does not tell them when the contribution was made. Finally, there is nothing in the IRS guidelines that says an order of events - only that you make the contribution by April 15.



nactownag - all good brother! I know I get a lot of investment questions wrong! LOL

nactownag said:

---

I will admit I must have been mistaken on this!
Sorry!!!

---

I just got scared for a minute I've been steering people wrong all these years! Nactown is typically a reliable source... Must be the holiday effect talking!