I have a sibling who is making one of these... Does this need to be accounted for on her 2017 tax return or would it not be accounted for until her 2018 tax return?

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Posted by TigerstuckinMS

Member since Nov 2005

33687 posts

Posted on 4/11/18 at 11:44 am to GeneralLee

Catch-up contributions made for the prior tax year should be accounted for on that prior year's return. So, a contribution made in 2018 applied to 2017 IRA limits would be accounted for on 2017 returns. Contributions made in 2018 applied to 2018 IRA limits would be accounted for on the future 2018 return.

This post was edited on 4/11/18 at 11:45 am

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Posted by Brummy

Central, LA

Member since Oct 2009

4664 posts

Posted on 4/11/18 at 11:59 am to GeneralLee

If it's a Roth contribution, it won't affect her return anyway.

ETA: The saver's credit noted below is a good point, although my experience is that most people who have an income level low enough to take it aren't contributing to a retirement plan anyway.

This post was edited on 4/12/18 at 8:22 am

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Posted by leRev

Member since Mar 2013

383 posts

Posted on 4/11/18 at 11:59 am to GeneralLee

It would apply to the 2017 tax year. However, since Roth IRA contributions are post-tax, I don't believe it is necessary to report them on her tax return. Could be wrong, but that is my understanding.

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Posted by Joshjrn

Baton Rouge

Member since Dec 2008

32039 posts

Posted on 4/11/18 at 3:07 pm to leRev

quote:
It would apply to the 2017 tax year. However, since Roth IRA contributions are post-tax, I don't believe it is necessary to report them on her tax return. Could be wrong, but that is my understanding.

You're right, but one possible implication is that, if your income is fairly low, you can get a saver's credit:

LINK

I stumbled across it doing my SO's taxes a few years ago.

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