The April 15^th filing deadline for most returns has been postponed to July 15^th.  This means the deadline to make any IRA contributions for tax year 2019 is also postponed to July 15^th, at least as far as IRS is concerned.  Wherever you may have your IRA, it may take some time for them to update their systems to accommodate contributions made after April 15^th for 2019 rather than 2020, but that’s a programming problem we expect they’ll be able to figure out by the time reporting forms are due next year.

 

If you get a stimulus check and by July 15^th find you don’t really need the cash, an IRA could be a good place to put it!  You do need to have earned income to be eligible, which means wages from an employer, self-employment income (net of expenses), or certain types of partnership income.  If married, only one spouse needs to have income for both spouses to be eligible.

 

If you file your return and then decide to make a 2019 contribution (or a larger one) by July 15^th, you may or may not need to file something with IRS, depending on what type of contribution you made:

Traditional IRA deductible contribution: amend returns to get a federal and state refund.

Traditional IRA non-deductible contribution: File Form 8606 with IRS, no need to amend any returns.

Roth contribution: no additional filing needed.

 

This is general information for your planning consideration.  You should consult your financial or tax advisor for more information before making a decision.