Can I make a 401(k) contribution for the 2017 tax year in March 2018, and is that contribution deductible for the 2017 tax year?
What are the deadlines for making contributions to a 401(k)? Now that it is March 2018, can I make a contribution to my 401(k) for tax year 2017? If I can make a 401(k) contribution for the 2017 tax year, will that contribution be deductible for the 2017 tax year?
- Deadline for 401(k) in 2018 is December 31, 2017
- No, with a 401(k) all contributions are for the current tax year
- Yes, contributions made in 2017 are deductible for 2017. This will show up on Box 13 of your W-2
Great questions. I hope this helps.
You may not. Only IRA contributions can be made in 2018 for 2017 before filing deadline. Your 401(k) is always considered tax deferred the year you contribute it. If you are a business owner and have a profit sharing piece to your 401(k) the profit sharing can be mad ein 2018 for 2017 tax year. However, to answer your question you cannot do what you are suggesting.
No, contributions to a 401(k) are deductible in the year that you actually make them.
If you're looking to reduce your taxable income further for 2017, consider opening an IRA. You can make contributions to an IRA up to the tax-filing deadline for 2017. All contributions are tax-deductible up to a particular income limit. You can contribute a maximum of $5500 in 2017, and if over age 50, an extra $1000 on top of that.
Unlike IRA's, 401k contributions must be made by the end of the year. Therefore, you can't make a 2017 401k contribution in March 2018. Again, you can make a Traditional or Roth IRA contribution until April 17, 2018, for the 2017 tax year.
Thanks for the question!