On March 17, 2021, the IRS extended the filing due date for individual tax returns to May 17, 2021. It was expected and hoped that the contribution deadline for IRA and HSA contributions would follow this extension but it was not certain. The IRS recently issued guidance confirming that the deadline for contributions to individual retirement accounts (traditional IRAs and Roth IRAs) and health savings accounts is automatically extended to May 17, 2021.
The guidance did not specifically address the treatment of SEPs or Solo 401(k) plans for purposes of the deadline change. It is possible that such relief will be forthcoming with additional guidance but would only be applicable to sole-proprietors sponsoring such arrangements. Both the initial extension and recent guidance stress that the extensions relate to individual returns. This would preclude entity types other than sole-proprietors from benefiting from the deposit deadline extension if it is confirmed for SEPs and Solo 401(k) plans.
Further updates will be provided as additional guidance becomes available.
If you should have any questions, please contact Mark Flanagan of Aronson’s Compensation and Benefits Practice.