October 15th Deadlines Are Approaching
October is here. This means fall is in full swing. Along with pumpkin spice lattes, football season, and sweater weather come four important October 15 deadlines you will not want to miss!
Avoid the Excess Contribution Penalty
Did you contribute too much to your traditional or Roth IRA for 2024? Maybe your income ended up being higher than you expected and it turned out you were ineligible for the Roth IRA contribution you made or maybe you did not have any taxable compensation for the year. If you made an excess contribution to your traditional or Roth IRA for 2024, you will want to fix that mistake by withdrawing the contribution, plus net income or loss attributable. Your deadline for getting this done and avoiding the 6% excess contribution penalty is October 15, 2025.
Recharacterize an IRA Contribution
While recharacterization of Roth IRA conversions is long gone, recharacterization of tax year contributions remains an option. Have you changed your mind about which type of 2024 IRA contribution you wanted to make? Maybe you contributed to a Roth and now you think a traditional IRA is a better fit, or vice versa. October 15, 2025, is your last chance to recharacterize that contribution to the other type of IRA.
Remove an Unwanted IRA Contribution
While your income does not affect your ability to make a traditional IRA contribution, it may affect your ability to deduct it if you or your spouse are a participant in an employer plan. If you later discovered that your 2024 traditional IRA contribution was not deductible, October 15, 2025, is the deadline to correct this problem by withdrawing the contribution (plus attributable income or loss). If you miss the deadline, the contribution must remain in the IRA as a nondeductible IRA contribution.
Make a SEP Contribution
Employers who are interested in establishing and funding a SEP IRA for 2024 may have a little more time to get this done. The deadline for making a SEP contribution is the business’s tax-filing deadline, including extensions. For some businesses, that date is October 15, 2025.
By Sarah Brenner, JD
Director of Retirement Education
Ed Slott and Company, LLC
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Christian Cordoba, founder of California Retirement Advisors, has been a member of Ed Slott's Master Elite IRA Advisor Group since 2007.