Important Tax Filing Deadlines

Important tax filing deadlines for 2017 are listed below.  As always, consult with your tax advisor if you have additional questions or concerns.

Individual Tax Deadline

April 18th, 2017

Individuals and Trusts are required to file by this date.  Form 1040 “U.S Individual Tax Return” and Form 1041 “U.S. Income Tax Return for Estates and Trusts” must be postmarked no later than the end of day. New tax rules pushed partnership returns forward one month this year.  Going forward, partnerships will be required to file on the same date as corporations.  If this deadline is unable to be met, individuals should file Form 4868 “Application for Automatic Extension of Time to File U.S. Individual Tax Return”.

 

Partnership Extension Deadline

September 15th, 2017

 

Individual Extension Deadline

October 15th, 2017

 

2016 Traditional and Roth IRA Accounts and Contributions

April 17th, 2018

Additional time is allowed to make prior year IRA contributions so that the taxpayer may understand their tax liability and make contributions that can reduce it further.  Contributions are reported on Form 5498 “IRA Contribution Information” in May of the year.

 

2017 Required Minimum Distribution (RMD)

December 29th, 2017

Starting in the year you turn 70 ½, you are required to withdraw a minimum amount from a traditional IRA or 401k plan (unless you are still actively working for the employer).  The amount you withdraw is based on your age and, if you are married, the difference in age between you and your spouse provided that they are the sole beneficiary of the retirement account.  If you have more than one traditional  retirement plan, you need to take out the amount based on the aggregate value of all accounts.  However, you do not have to do the distribution from each account.

The penalty for missing a Required Minimum Distribution is 50% of the amount you were required to distribute from the account.  You will need to complete Form 5329 “Additional Taxes on qualified Plans (Including IRAs) and Other Tax-Favored Accounts” if the deadline is missed.  This form can also be used to apply to have the penalty waived if the account owner can show that the shortfall in distribution was due to a reasonable error.

 

2016 First Time Required Minimum Distribution (RMD)

April 1st, 2017

The IRS allows an exception to the year-end deadline for RMD for the first year it is required.  While taking an RMD late this way avoids the 50% penalty, it does not change the fact that the current year RMD will also be required.  This will mean that two RMD distributions, which are taxed at ordinary income, will be required.  The income from the retirement accounts can increase the tax liability for the year.

 

2017 Charitable IRA Distribution

December 29th, 2017

Qualified Charitable Distributions (QCD) are tax free distributions that satisfy the annual RMD requirement.  QCD are reported to the IRS on Form 1040 by entering “0 QCD” for the taxable amount of your IRA distribution.

 

2017 Roth IRA Conversion

December 29th, 2017

Traditional IRA assets can be converted to a Roth IRA.  This is a taxable event, though there is no penalty assessed during a Roth IRA conversion.  Form 8606 “Nondeductible IRAs” will be report the conversion to the IRS, and taxes are due April 18th, 2017.  The rules and taxation of a Roth Conversion are complicated.  Before considering a conversion, consult with a tax professional.

 

2017 IRA Recharacterizations

October 17th, 2018

You can reverse a conversion from a Traditional to Roth IRA through a recharacterization.  If you have already filed your taxes, you will need to file a Form 1040X “Amended U.S. Individual Income Tax Return”.

 

Beneficiary IRA with 5-Year Payout Elections

December 29th, 2017

If the original IRA owner passed in 2012, all beneficiary accounts with the 5-year payout election need to have assets distributed by this date.

 

Disclaimer:  The information provided is not intended to be legal or tax advice.  Every business situation is different, and IRS tax rules change annually.  Consult with you tax and legal advisors before making any business decisions. Phoenician Financial Planning, LLC offers tax planning consultation services.

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