You Can Still Make 2017 Contributions to Retirement Accounts

BY STEVE DINNEN

Who says you have to get your income tax ducks in a row by Dec. 31 every year? For most workplace retirement savings plan deductions, you can stall 2017 payments almost to 2019 and still claim the deduction on your 2017 income taxes.

Take a SEP IRA (Simplified Employee Pension Individual Retirement Arrangement), for instance. This retirement account, which works for high-earning business owners, can have 2017 (deductible) tax year dollars poured into it as late as the tax filing deadline of April 18, or even Oct. 15 if an extension is requested.

2017 deductions also work into 2018 for Simple IRAs, traditional IRAs, Keogh Plans and solo 401(k)s. And in some instances the plan will not even have to be set up until this year and still qualify for a 2017 deduction. But in other cases (such as the Simple IRA) the plan would have to have been established during 2017.

Keogh plans (not so popular these days due to cumbersome governing rules) and SEP-IRAs are the most generous retirement savings plans, allowing more than $50,000 annually in contributions. Solo 401(k)s also work nicely, with annual contributions of up to $24,000 for the employee (you can be self-employed), and a partial match from your employer (which might be yourself).