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ComplianceTax & AccountingApril 05, 2021

2020 IRA, HSA, CESA regular contribution deadlines postponed: IRS Notice 2021-21

By: Carlene Ballieu

Overview

On March 17, 2021, the Internal Revenue Service (IRS) announced that the 2020 federal income tax-filing due date is automatically postponed from April 15, 2021 to May 17, 2021. The tax-filing postponement applies only to those filing on the Form 1040 series, which includes Form 1040, Form 1040-SR, Form 1040-NR, Form 1040-PR, and Form 1040-SS.

The March 17, 2021 announcement did not indicate whether this postponement also applied to other 2020 deadlines that fall on April 15, 2021. However, on March 29, 2021, the IRS released Notice 2021-21, Relief for Form 1040 Filers Affected by Ongoing Coronavirus Disease 2019 Pandemic, which provides the official guidance that clarifies additional April 15 postponements and provides a new filing deadline.

IRA, HSA, CESA regular contribution deadline postponed

IRS Notice 2021-21 confirms the postponement of the deadline for individuals to make a 2020 tax year regular contribution to a traditional and/or Roth individual retirement account (IRA), Health Savings Account (HSA), or to a Coverdell Education Savings Account (CESA) on behalf of a designated beneficiary. The deadline to make a regular contribution to any such account for 2020 is postponed from April 15, 2021 to May 17, 2021.

Form 5498 series reporting deadlines postponed

IRS Notice 2021-21 also announces postponement of the deadline for IRA custodians/trustees to file and furnish 2020 Forms 5498 to the IRS, account owners, and account beneficiaries. The June 1, 2021 deadline is automatically postponed to June 30, 2021, and applies to Form 5498, IRA Contribution Information, Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information, and Form 5498-ESA, Coverdell ESA Contribution Information.

Conclusion

Though it was anticipated, the IRS confirmed the postponement of the 2020 tax-filing deadline from April 15, 2021 to May 17, 2021 also applies to the deadline by which regular contributions must be made to an IRA, HSA, or CESA for 2020. And in conjunction with the extended contribution deadline the IRS also extended the reporting deadlines for the Form 5498 series to June 30, 2021.

For an opportunity to learn more about IRAs and other tax-advantaged accounts including Health Savings Accounts and Coverdell Education Savings Accounts, consider the Wolters Kluwer IRA Library or on-demand video training offered on a variety of topics. Go here to learn more about training opportunities available to you, or you can call us at 1-800-552-9408.

Carlene Ballieu
Senior Specialized Consultant, Tax Advantaged Accounts, Compliance Center of Excellence