As a measure of relief to U.S. taxpayers who may have struggled with the economic impacts of the COVID-19 pandemic, the 2019 income tax filing deadline was moved from April 15 to July 15…which is right around the corner! If you haven’t already filed your federal and state income taxes, now is the time to do so. Consult with your accountant or tax professional if you need assistance.
Apart from filing considerations, what does the July 15 deadline mean for self-directed investors like you?
The first half of 2020 may have already felt like a marathon of a year, but amazingly, the books on 2019 are still open for contribution purposes. You can STILL make a contribution to your self-directed account for 2019 until July 15, 2020, provided you haven’t already maxed out your allowable 2019 contribution. Contributions attributed to the 2019 tax year do not count against your 2020 contribution limit, so you could simultaneously make both 2019 and 2020 contributions prior to July 15.
Adding funds to your account now can allow you to make new investments or cover investment-related expenses. Furthermore, if you hold a pre-tax account like a Traditional IRA, your contribution can be completely tax deductible. While the window for making 2020 contributions will remain open until next year’s Tax Day (April 15, 2021), the window for 2019 will close in a matter of days on July 15.
New Direction Trust Company is here to assist with any needs related to your self-directed IRA, 401(k), or Health Savings Account. Please don’t hesitate to give us a call at 877-742-1270 or send us an e-mail at email@example.com.