Missed IRA purchase due date?

[Guest Ted7]

I declared an IRA for $1000 on my tax form which was sent in on time. However I needed to purchase the IRA for 2003 by April 15, 2004. I still need to make this IRA purchase however my bank said I couldn't. Is there a way to purchase an IRA for 2003 or should I make one for 2004. If not what will the penalty be as I have already received my refund?

[Appleby]

Ted7,

Since you did not deposit the amount to your IRA by April 15, it is too late.

Talk to your tax professional about filing an amended return to remove the contribution and to determine if you owe the IRS.

Any amount you contribute now will be attributed to the 2004 tax-year

[John G]

If you deducted the $1,000 for a contribution to a regular IRA, then you need to file an amended tax return. If the contribution was to a Roth or a non-deductable regular IRA contribution, then you need to contact your custodian and make sure it is listed as a 2004 contribution ~ these two possibilities would not require an amended tax return since there is not tax deduction.

For all readers! Stay out of this kind of problem by not putting off to the last minute contributions to any retirement account. Some folks make there contributions the first week of January which has the added benefit of giving your money more tax sheltered time to grow.

For all readers Don't assume that your custodian posted any transaction correctly. You need to check your statements to confirm dollar amounts, tax year designations and investment choices.

[papogi]

Even if this was a Roth IRA, you might need to file an amended return. The credit for contributions to retirement plans extends to Roth IRA's (form 8880). If this form was filled out in the tax return, it would mean that an amended return should be filed.

[txdd]

If the deposit was reported as a non-deductible traditional IRA contribution, you will need to amend your tax return to correct your Form 8606. No change in tax.