IRS Extends HSA 2020 Contribution Deadline

On March 29, 2021, the Internal Revenue Service (IRS) issued Notice 2021-21, which extends tax deadlines to May 17, 2021 for individuals filing Form 1040 series returns and making 2020 IRA and HSA contributions. This decision follows a previous announcement from the IRS declaring that the federal income tax filing due date for individuals for the 2020 tax year was extended from April 15, 2021 to May 17, 2021.

Form 1040 Series

This series includes Form 1040, Form 1040-SR, Form 1040-NR, Form 1040-PR, and Form 1040-SS. Businesses and other classes of taxpayers that file federal income tax returns on forms outside of the Form 1040 series are not eligible for the extension. Additionally, the Notice does not alter the April 15, 2021 deadline for estimated tax payments.

IRA & HSA Contributions

The Notice provides that individuals can make 2020 contributions to the following accounts up until the May 17th deadline:

  • Individualized retirement arrangements (IRAs and Roth IRAs);
  • Health savings accounts (HSAs);
  • Archer medical savings accounts (Archer MSAs); and
  • Coverdell education savings accounts.

Additionally, the Notice postpones the deadline for Form 5498 series returns to June 30, 2021. This series of forms (Form 5498, Form 5498-ESA, and Form 5498-SA) must usually be filed with the IRS and furnished to participants and beneficiaries by the due date listed in general instructions for other information returns. With that said, the timeframe — which runs from the original due date and ends on June 30, 2021 — will be disregarded in calculating any penalty for failure to file.

Keep in mind, the Notice extends the time to claim refunds for 2017 federal income tax returns and the time to file an application to voluntarily participate in the Annual Filing Season Program for the 2021 calendar year to May 17, 2021.

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