As the end of 2024 approaches, self-directed account holders should take note of important deadlines that could impact compliance with IRS regulations. Missing these deadlines can result in penalties, missed opportunities for tax savings, or additional fees for expedited processing. Here are the critical year-end deadlines and important early 2025 dates for Self-Directed account holders.
Roth Conversion Deadlines
A Roth Conversion allows you to move funds from a traditional IRA to a Roth IRA, taking a taxable event in the current year in exchange for future tax-free growth. However, these conversions come with strict deadlines. For conversions in 2024, the deadline is December 16, 2024. To meet this deadline, you must submit a Taxable Event FMV (Fair Market Value) form and all required supporting documentation.
If you are converting cash from a traditional IRA to a Roth IRA, the final deadline to have cash available in your account is December 26, 2024. While transactions can still occur after this date and up until December 31, 2024, expedited processing fees will apply at Directed IRA, and all required forms and documentation must be completed in good order to avoid delays. Late submissions, particularly those arriving on December 31 or shortly before, are at risk of not being processed in time if requirements are not met. To learn more, watch our most recent Directed IRA Podcast Episode about Roth Conversions.
Required Minimum Distributions (RMDs)
Critical update for account holders required to take RMDs in 2024, including those turning 73 this year, the IRS deadline for Directed IRA to process RMD requests is December 31st, 2024. RMDs are mandatory for Traditional IRAs and certain other account types, and failing to take the required distribution by year-end can result in significant IRS penalties. It is critical to ensure that all paperwork is submitted well in advance of this deadline (12/26 is the DIRA cut off without fees) to allow for processing times. Read our complete public notice here.
Contribution Limits Increased for 2025
The IRS has announced increases in 2025 contribution limits for various retirement and savings accounts, including Solo 401(k)s, SEP IRAs, Simple IRAs, and HSAs. Click Here to view all the 2025 contribution limit updates..
Early 2025 Tax Season Deadlines
Looking ahead to the 2025 tax season, there are additional deadlines that self-directed IRA account holders should keep in mind. April 15, 2025, marks the tax filing deadline, and it is also the last day to make traditional IRA, Roth IRA, HSA and 401k account contributions for the 2024 tax year.
By March 31, 2025, Directed IRA will file all 1099-R forms electronically. These forms are essential for reporting distributions and other taxable events. Clients should verify the accuracy of these forms and contact Directed IRA with any discrepancies as soon as possible.
Have Questions?
If you have questions about these deadlines or need assistance with forms, documentation, or account updates, our team at Directed IRA is here to help (Book a Call). For professional support with tax and legal documentation, please contact your tax or legal advisor. By staying informed and organized, you can optimize the benefits of your self-directed retirement accounts and confidently meet all IRS requirements.
