Deadlines are Near for 2021 IRA Contributions

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The deadline for your clients to make IRA contributions for the 2021 tax year is quickly approaching. All 2021 contributions must be postmarked to Athene or picked up by a UPS or FedEx delivery carrier no later than April 18, 2022.1

2021 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: $58,000 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 “2021” for the contribution year. Otherwise, the contribution will default to 2022.2
  • 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 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 18, 2022.
  • 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.

1 For SEP IRAs, the deadline can be as late as October 15, 2022 if an extension was filed.

2 Athene will treat all SEP IRA contributions received through October 15, 2022 as 2021 contributions unless noted otherwise somewhere on the check.