Deadlines are Near for 2020 IRA Contributions

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The deadline for your clients to make IRA contributions for the 2020 tax year is quickly approaching. All 2020 contributions must be postmarked to Athene or picked up by a UPS or FedEx delivery carrier no later than…

  • Traditional and Roth IRAs: April 15, 2021.
  • SEP IRAs: April 15, 2021 or October 15, 2021 if an extension was filed.*

2020 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: $57,000 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 “2020” for the contribution year. Otherwise, the contribution will default to 2021.*
  • 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 includes 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 15, 2021.
  • 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.

* Please note: For SEP IRAs, Athene will treat all contributions received through October 15, 2021 as 2020 contributions unless noted otherwise somewhere on the check.

Any information regarding taxation contained herein is based on our understanding of current tax law, which is subject to change and differing interpretations. This information should not be relied on as tax advice and cannot be used by any taxpayer for the purpose of avoiding penalties under the Internal Revenue Code. We recommend that taxpayers consult with their professional tax and legal advisors for applicability to their personal circumstances.

Thank you for your business. At Athene, we’re committed to helping take you to the next level.