The extended tax-filing deadline gives many Americans extra time to contribute to certain investment accounts for 2020.
The IRS in March moved the due date for individual returns to May 17 from April 15 due to the coronavirus pandemic. It also confirmed in March that moving the filing deadline also pushed back the last day to contribute to individual retirement accounts and Roth IRAs for the 2020 tax year.
The last day for such contributions matches the filing deadline, meaning that investors have one more week to sock away money for retirement.
“This is a rarity in the tax world,” said Ed Slott, CPA and founder of Ed Slott & Co. “It’s very rare in the tax code that you get an opportunity so far after the year ends to actually change or better your position for the prior year.”
People also have until May 17 to contribute to health savings accounts, Archer medical savings accounts and Coverdell education savings accounts in addition to IRAs.