Deadlines are Near for 2023 IRA Contributions

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The deadline for your clients to make IRA contributions for the 2023 tax year is quickly approaching. All 2023 contributions must be postmarked to Athene or picked up by a UPS or FedEx delivery carrier no later than April 15, 2024.1

2023 IRA contribution limits:

  • Traditional and Roth IRAs: $6,500 ($7,500 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: $66,000 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 “2023” for the contribution year. Otherwise, the contribution will default to 2024.2
  • 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 15, 2024.
  • 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.

Thank you for your business. At Athene, we’re driven to outperform so your clients can retire with confidence.

1 For most taxpayers, the deadline to file their personal federal tax return, pay any tax owed or request an extension to file is Monday, April 15, 2024.  Taxpayers living in Maine or Massachusetts have until April 17, 2024, due to the Patriot’s Day and Emancipation Day holidays. For SEP IRAs, the deadline can be as late as October 15, 2024, if an extension was filed. If a taxpayer resides in a federally declared disaster area, they also may have additional time to file. Review the IRS guidelines for more information on disaster relief.

2 Athene will treat all SEP IRA contributions received through October 15, 2024 as 2023 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 or legal advice and cannot be used by any taxpayer for the purposes 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.