Deadline extended for contributions to IRAS, Qualified Retirement Plans, Health Savings Accounts, and Archer MSAs

The Treasury Department and the Internal Revenue Service issued an announcement (Notice 2020-18) extending the deadline for contributing to an IRA, Qualified Retirement Plans, Health Savings Accounts, and Archer MSAs. The extension was in response to the coronavirus crises and in line with the recent extension for federal tax filings and payments.

Below are answers to some of the significant questions provided in the notice.

"Q17: Does this Notice provide me more time to contribute money to my IRA for 2019?    
A17: Yes. Contributions can be made to your IRA, for a particular year, at any time during the year or by the due date for filing your return for that year. Because the due date for filing Federal income tax returns has been postponed to July 15, the deadline for making contributions to your IRA for 2019 is also extended to July 15, 2020.

"Q20: For employers with a federal income tax return due date of April 15, 2020, is the end of the grace period under section 404(a)(6) to make contributions to their qualified retirement plans on account of 2019 also July 15, 2020 as a result of this relief?    
A20: Yes.

"Q21: Does this relief provide me more time to contribute money to my HSA or Archer MSA for 2019?   
A21: Yes. Contributions may be made to your HSA or Archer MSA, for a particular year, at any time during the year or by the due date for filing your return for that year. Because the due date for filing Federal income tax returns is now July 15, 2020, under this relief, you may make contributions to your HSA or Archer MSA for 2019 at any time up to July 15, 2020."

If you have any questions about how this extension could apply to you or your organization, please contact one of the members of our Employee Benefits Practice below.