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Sarah was contemplating making a contribution to her traditional IRA in 2014. She determined
she would contribute $5,000 in December 2014, but forgot about making the contribution until
she was preparing her 2014 tax return in February 2015. Use the website of any well-known IRA
provider (eg. Fidelity, Vanguard, T. Rowe Price) to determine if Sarah can make a 2014
contribution to her IRA after the tax year has ended.
Solution
If an individual could not able to make contributions to their IRA account within the end of the
tax year both penalty and interest on over dues must be paid. If intentionally mislead the
government both criminal and civil penalties must be made on the person. In the present case, S
can make a 2014 contribution to her IRA after the tax year has ended but subject to above
mentioned restrictions.

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Sarah was contemplating making a contribution to her traditional IRA.pdf

  • 1. Sarah was contemplating making a contribution to her traditional IRA in 2014. She determined she would contribute $5,000 in December 2014, but forgot about making the contribution until she was preparing her 2014 tax return in February 2015. Use the website of any well-known IRA provider (eg. Fidelity, Vanguard, T. Rowe Price) to determine if Sarah can make a 2014 contribution to her IRA after the tax year has ended. Solution If an individual could not able to make contributions to their IRA account within the end of the tax year both penalty and interest on over dues must be paid. If intentionally mislead the government both criminal and civil penalties must be made on the person. In the present case, S can make a 2014 contribution to her IRA after the tax year has ended but subject to above mentioned restrictions.