Announcements

April 9, 2024

Upcoming deadlines

Many of your clients may have important deadlines approaching.

Requests for account transactions received by Capital Group after the close of the New York Stock Exchange (NYSE) on Friday December 29, 2023, were processed on the next business day and will be reported in the 2024 tax year.

Key information to review with clients

Required minimum distributions (RMDs)

Beginning in 2023, the SECURE 2.0 Act raised the age clients must begin taking RMDs to age 73. If clients reach age 72 in 2023, the required beginning date for the first RMD is April 1, 2025, for 2024. If clients reached age 73 in 2023, then they were 72 in 2022 and subject to the age 72 RMD rule in effect for 2022. If they reached age 72 in 2022, then the first RMD was due by April 1, 2023, based on their account balance on December 31, 2021, and the second RMD was due by December 31, 2023, based on their account balance on December 31, 2022.

Learn more:

Required Minimum Distribution (RMD) Guide

403(b) Basic required minimum distributions (RMDs)

Beneficiary distributions

Remind your clients who are beneficiaries of an IRA that they may need to take their annual distributions by December 31.

Gift of shares

For 2024, clients can gift up to $18,000 ($36,000 for married couples) without incurring tax consequences. If you have clients who want to reduce their tax liabilities for 2024, complete the appropriate form(s) and return by December 31.


Forms:

Gift of Shares Request

Gift Transfer of Shares to a Charitable Organization (PDF)

Deadlines to keep in mind

Traditional IRAs, Roth IRAs and Coverdell education savings accounts

Contributions for the 2023 tax year must be made by Monday, April 15, 2024.

We will accept prior-year contributions that are postmarked by the due date for individual tax returns. Extensions do not apply.
 

Learn more:

IRA Contributions Guide

Coverdell ESA contributions

SIMPLE IRAs

Establishment. The plan must be established by October 1 of the current calendar year, unless it's a plan for a new business that was established after October 1 of the SIMPLE IRA plan set-up year.

Employer contributions. All contributions must be made by the employer’s tax filing deadline (including extensions).

Employee contributions.  Contributions can begin only after the plan has been established.

 


Learn more:

SIMPLE IRA

Set up a SIMPLE IRA Plan

Set up a SIMPLE IRA Plus plan

SEP plans

Establishment. The plan must be established by the employer’s tax filing deadline (including extensions).

Employer contributions. All contributions must be made by the employer’s tax filing deadline (including extensions).


Learn more:

SEP IRA

Set up a SEP IRA Plan

401(k) plans

Establishment. Plans can be adopted by the due date of the employer's tax return for that year (including extensions). However, the 401(k) feature of a plan may not be made effective earlier than the adoption date. In other words, the 401(k) feature of a plan cannot be adopted retroactively. Additionally, safe harbor 401(k) plans require an initial plan year at least three months long, making October 1 the deadline for a safe harbor plan with a calendar-based plan year.



Learn more:

401(k) and 403(b) Retirement Plans
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