On March 17, 2021, the Treasury Department and the Internal Revenue Service announced an extension of the 2020 tax filing deadline, shifting the normal April 15 deadline to May 17, 2021 for most taxpayers.  Residents of Texas, Oklahoma, and Louisiana have until June 15, 2021, to file their 2020 returns due to the February winter storm disaster.

“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” said IRS Commissioner Chuck Rettig.

WHAT THIS MEANS FOR YOUR IRA:

1. IRA Contribution Deadline Extended – The extension affords taxpayers an added benefit for investors contributing to Traditional IRAs and Roth IRAs, as the contribution deadline is automatically pushed back to coincide with the filing deadline. Most notably, investors have additional time to contribute to their IRA and save toward retirement. Following the standard April 15 deadline, investors must instruct their custodian whether to apply contributions to the 2020 or 2021 tax year. For 2020 and 2021 contribution limits click here. Contribution instructions for STRATA account holders are available here. 
   
   
2. Fair Market Value (FMV) Deadline Extended – STRATA sent out initial valuation update requests on February 1, 2021, to investment sponsors for private equity investment updates and directly to clients who hold real estate within their IRA for real estate updates.  For private equity investment updates, STRATA will notify clients directly on May 3, 2021, if the valuation update has not been received from the investment sponsor. FMV statements must be submitted to STRATA by June 30, 2021. For additional information on FMV statements and reporting requirements click here. 
   
   
3. IRS Form 5498 Filing Deadline Extended – IRA Contribution Information, reported on IRS Form 5498, filing deadline for STRATA has been extended to June 30th to be able to report any additional 2020 IRA contributions investors may make. A copy of IRS Form 5498 will be made available to STRATA account holders (if applicable to your account) by June 30, 2021.
   
   
4. Reporting UBTI/UDFI Deadline Extended – Unrelated Business Taxable Income (UBTI) and/or Unrelated Debt-Financed Income (UDFI) applies if your IRA investments earned business income in 2020. You may file IRS Form 990-T along with the new tax filing deadline. For more information on UBTI/UDFI reporting requirements see our STRATA Insights article: Do Your IRA Investments Earn Business Income?
   
   

FOR MORE INFORMATION

You can download the updated 2021 IRA Calendar which reflects the above-mentioned extension deadlines. If you have additional questions, consult a financial or tax professional about your filing requirements.