Last week TaxMama told you that certain taxpayers are still eligible to make contributions to their 2006 IRA accounts, or earlier years’ IRAs. Here’s some clarification about the open questions.
IRS’s Eric Smith did some more digging for us. Smith tells us that those who served in combat zones have up to 180 days after their return to file their tax returns. In general, that also applies to their IRA funding deadline.
And of course, under the HEROs Act, qualifying military personnel may have all the way until May 28, 2009 to make contributions for 2004, 2005, 2006.
However, when it comes to those people who were affected by the Virginia Tech shooting, their October 15th extension to file their tax returns and pay their tax liabilities did not include extra time to fund their IRAs. Smith tells us that because the Virginia Tech situation was separate and not related to a disaster declaration, IRS’s authority was, accordingly, much more limited. Thus, the Virginia Tech extension is under sections 6081 and 6161 which does not extend the deadline for making IRA contributions.”
And remember, you’ll find answers to lots of questions, about special IRA tricks and other tax information, free. Where? At TaxMama.com[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips. Please click on the subscribe link and join us.]
- Ask TaxMama :: Where taxes are fun and answers are free
- TaxQuips :: The number ONE tax podcast online
- HEROs Act :: Heroes Earned Retirement Opportunities (HERO) Act
- IRS Announcements :: Tax Relief in Disaster Situations
- IRS Announcement :: IRS Grants Tax Relief for Certain Northeast Storm, Flooding Victims