Deadlines are Near for 2022 IRA Contributions

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The deadline for your clients to make IRA contributions for the 2022 tax year is quickly approaching. All 2022 contributions must be postmarked to Athene or picked up by a UPS or FedEx delivery carrier no later than  April 18, 2023.1

2022 IRA contribution limits:

  • Traditional and Roth IRAs: $6,000 ($7,000 if your clients are age 50 or older) or your clients’ taxable compensation for the year if their compensation was less than the dollar limit.
  • SEP IRAs: $61,000 or 25% of the employee’s salary, whichever is less.

Don’t forget: Be sure to check the minimum premium requirements for the product you’re selling prior to solicitation.

IRA funding requirements:

  • The application or check must clearly indicate “2022” for the contribution year. Otherwise, the contribution will default to 2023.2
  • If the client has written one check for both current and prior year contributions, please make sure the amounts and years are noted in the memo field of the check or in a letter of instruction.
  • If the client has written one check to be split between multiple contracts, please make sure to provide instructions with the check that include the contract numbers and dollar amounts.
  • Funds must come from a personal account. We cannot accept funds from another carrier or a business account.
  • Personal checks must be from a U.S. Bank with the name and/or address of the owner imprinted on the front of the check.
  • Cashier’s checks must be from the remitter’s U.S. bank and include the name of the owner as remitter.
  • Replacement checks for unacceptable forms of payment must be postmarked to Athene or picked up by a UPS or FedEx delivery carrier no later than April 18, 2023.
  • Premium may only be applied to an existing annuity if it is a flexible premium annuity that accepts additional premium. Single premium annuities do not accept premium after issue.

 

Important Note:

SECURE Act 2.0 legislation passed on December 29, 2022, which changed the age to begin taking required minimum distributions (RMD) starting in 2023. Under the new law, individuals who have not yet turned 72 by January 1, 2023, can now wait until age 73 to take their RMD. However, individuals who turned 72 by the end of 2022, will still need to take an RMD for 2023.

1 For SEP IRAs, the deadline can be as late as October 15, 2023 if an extension was filed.
2 Athene will treat all SEP IRA contributions received through October 15, 2023 as 2022 contributions unless noted otherwise somewhere on the check.