I deducted my IRA contribution on my tax return but failed to transfer the funds. What do I do?

By Denise Appleby AAA
A:



If an IRA contribution was deducted on a tax return, but the contribution was never made to the IRA by the taxpayer's tax filing deadline (no extension included), the tax return must be amended to remove the contribution. Generally, Form 1040X must be filed within three years after the date the original return is filed or within two years after the date the taxpayer paid his or her income tax, whichever is later. If the contribution was reflected on the state tax return, an amended return for the state should also be filed.



For more insight, check out IRA Contributions: Deductions And Tax Credits.



This question was answered by Denise Appleby
(Contact Denise)



RELATED FAQS

  1. Are progressive taxes ever more unfair that flat taxes?

    Learn more about progressive taxes and flat taxes. Find out why progressive taxes may be unfair for many taxpayers and why ...
  2. Is a progressive tax more fair than a flat tax?

    Find out which is more fair: flat tax or progressive tax. Learn about both sides of the debate and the challenges of defining ...
  3. Who first came up with the idea of a progressive tax?

    Learn how the progressive income tax system developed in the United States and became the federal government's primary revenue ...
  4. Is progressive tax the same thing as marginal tax rate?

    Learn how a marginal tax rate is a form of a progressive tax rate. Learn the pros and cons of such a tax policy and who may ...
RELATED TERMS
  1. Current Service Benefit

    The amount of pension benefit accrued by an employee who had ...
  2. Self Invested Personal Pension (SIPP)

    A tax-efficient retirement savings account available in Great ...
  3. Senior Move Manager

    Senior move managers (SMMs) help seniors downsize and relocate ...
  4. Elder Care

    Elder care, sometimes called elderly care, refers to services ...
  5. Deferred Tax Asset

    A deferred tax asset is an asset on a company's balance sheet ...
  6. Gold IRA

    Definition of Gold IRA

You May Also Like

Related Articles
  1. Retirement

    Top 10 Stocks for Retirement Portfolios

  2. Trading Strategies

    Top 7 Roth IRA Stocks for 2015

  3. Investing

    Why did Larry Page pay himself a salary ...

  4. Professionals

    Are Longevity Annuities in 401(k)s a ...

  5. Stock Analysis

    What Makes LinnCo Different From MLPs?

Trading Center