ComplianceTax & AccountingDecember 11, 2019

Individual retirement accounts: dates and deadlines in 2020

The following information provides the key dates and deadlines applicable to traditional (including simplified employee pension ― SEP), Roth, and Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) individual retirement accounts (IRAs).
Date
Item
Action
1/31/2020 Form 1099-R (to Recipients) Provide IRS Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., to recipients of 2019 distributions made from a traditional (including SEP), Roth, or SIMPLE IRA.
1/31/2020 RMD Notice Required Minimum Distribution (RMD) Notice is sent to IRA owners age 70½ or older during the year to provide certain RMD information.
1/31/2020 Fair Market Value Fair Market Value (FMV) Report provides each IRA owner (or beneficiary of a decedent's IRA (or employer plan directly rolled over to an inherited IRA) of the previous year-end (i.e., December 31) balance.
1/31/2020 SIMPLE IRA Activity Report Provide a year-end Activity Statement or IRS Form 5498, IRA Contribution Information, to SIMPLE IRA owners.
2/28/2020 Form 1099-R (to IRS – Paper Filers) Paper filers provide the IRS with Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. reporting 2019 distributions made from a traditional (including SEP), Roth, or SIMPLE IRA.
4/1/2020 Required Minimum Distribution (RMD) Start Date Traditional (including SEP), and SIMPLE IRA owners age 70½ during 2019 have until April 1, 2020 to distribute their 2019 RMD.
3/31/2020 Form 1099-R (to IRS – Electronic Filers) Electronic filers provide the IRS with Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., reporting 2019 distributions made from a traditional (including SEP), Roth, or SIMPLE IRA.
4/15/2020 Regular Contributions Traditional and Roth IRA regular contribution deadline for 2019 is an IRA owner's 2019 tax filing due date, excluding extensions.
6/1/2020 Form 5498 Provide Form 5498, IRA Contribution Information, to report all contributions to an IRA except IRA-to-IRA transfers. Form 5498 reports the IRA type, regular contributions made for the previous tax year, SEP and SIMPLE contributions made during 2019, hard to value asset information, IRA owner's 2020 RMD status, and the IRA's prior December 31 FMV to the IRA owner, beneficiary (if applicable), and the IRS.
10/1/2020 SIMPLE Adoption Deadline to adopt a SIMPLE plan for 2020. A new employer may establish a SIMPLE plan for the current year as soon as administratively feasible after it comes into existence prior to December 31st.
10/15/2020 Recharacterization Deadline to recharacterize a 2019 IRA regular contribution.
10/15/2020 Excess Removal Deadline for most IRA owners to remove an excess contribution made for 2019.
11/1/2020 SIMPLE IRA Summary Description Annual Summary Description is provided to each SIMPLE IRA owner's employer for the employer to complete its annual notice requirement to eligible employees. The Summary Description deadline is a reasonable period prior to the annual 60-day election period that begins November 2 each year.
11/1/2020 SIMPLE IRA Employer Notice The Annual Employer Notice to Eligible Employees is a written notice to each of the employer's eligible employees provided prior to the annual 60-day election period that begins November 2 each year.
12/31/2020 Required Minimum Distribution Deadline (years after 70½ year) IRA owners that attained age 70½ prior to 2020 have until December 31, 2020 to take their 2020 RMD.
As Required SIMPLE IRA Deferrals SIMPLE IRA Salary Deferrals are required to be deposited into an employee's SIMPLE IRA by the earlier of the 30th calendar day of the month following the month in which the employer withheld the salary deferral contribution from the employee's wages or as soon as an employer can reasonably segregate the deferred amounts from its general assets.
As Required SEP and SIMPLE IRA Employer Contributions Employer contributions must be deposited by the due date of the employer's tax return (including extensions).
As Required Notice of Federal Income Tax Withholding Provided recipients of traditional (including SEP) and SIMPLE IRA distributions no earlier than six months prior to distribution date and no later than the time of the distribution. If automatic distributions are quarterly or more frequent, one notice is required prior to the first distribution each year. Distributions paid on a less frequent schedule require a notice no more than six months before each distribution.
For an opportunity to learn more about IRAs and other tax-advantaged accounts including Health Savings Accounts and Coverdell Education Savings Accounts, consider our on-demand video training offered on a variety of topics. Go here to learn more about training opportunities available to you, or call us at 1-800-552-9408.
Diana Theis
Senior Specialized Consultant, Tax Advantaged Accounts
With more than 30 years of experience, Diana has worked closely with hundreds of financial organizations to help them create, implement, and maintain their tax-advantaged accounts program.