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. If there are two plans and one is terminated, creating a distributable event, can ...

    It depends. If the loan is in good standing - the participant did not default on the loan and the loan meets other statutory ...
  2. Is it easier to save for retirement if you start earlier in life? Can I make up for ...

    In general, the earlier you start saving for retirement, the easier it will be to afford, given the number of financial obligations ...
  3. Is my 403(b) account owned by me or by the institution?

    You are the owner of your 403(b). The financial institution just holds the assets on your behalf and facilitates your transactions.For ...
  4. Can I close my existing Roth IRA and invest in a new Roth IRA at a different financial ...

    If If you withdraw your Roth IRA contribution, the amount will be tax and penalty free. If your initial contribution accrued ...
RELATED TERMS
  1. Eligible Transfer

    An IRS-allowed movement of assets into or out of an individual ...
  2. Death Master File (DMF)

    Also known as Social Security Death Index. A list of people whose ...
  3. Leveraged Benefits

    The use – by a business owner or professional practitioner – ...
  4. Peri-Retirement

    A term for the period of time leading up to actual retirement. ...
  5. MyRA

    A new tax-advantaged retirement account that President Barack ...
  6. Provident Fund

    A compulsory, government-managed retirement savings scheme used ...
comments powered by Disqus
Related Articles
  1. The Defined-Contribution Plan: A Flawed ...
    Retirement

    The Defined-Contribution Plan: A Flawed ...

  2. Should You Roll Over Your 401(k)?
    Retirement

    Should You Roll Over Your 401(k)?

  3. 5 Ways To Fund Your Retirement
    Retirement

    5 Ways To Fund Your Retirement

  4. 3 Reasons To Use An Employer-Sponsored ...
    Retirement

    3 Reasons To Use An Employer-Sponsored ...

  5. 5 Lessons From The Recession
    Trading Strategies

    5 Lessons From The Recession

Trading Center