Ask Terry Questions IRA Year Mistake

IRA Year Mistake

By Terry Savage on April 10, 2017 | Taxes & Economy

I made an IRA contribution in January of 2016 for my 2015 taxes, but it was coded as a current year investment. I filed my 2015 taxes with that amount and wanted to do new IRA's for my wife and me this year 2018, for 2017 taxes and cannot. What do I do?

Terry Says

That's an expensive mistake.  I think it would be impossible to get the forms corrected for your contribution made last January.  And if you deducted it on your 2015 tax return, you might have a fight with the IRS.  Then again, they may not notice it.  Or you might want to go back and amend the 2015 return --but that could really stir things up, and be costly as well.   You might want to consult a CPA on this. I'd suggest waiting until January,2018 to make a contribution for that year.  Make it early in the year, and the money will  have longer to grow.



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