October is traditionally chock-full of scary activities such as horror-fests of books and movies, Halloween — and various tax due dates. Though it’s still September, those due dates are creeping up faster than you think. Fortunately, acting now can save the day. Here’s what you need to know.
- Retirement plans. The deadline for setting up a Savings Incentive Match Plan for Employees (SIMPLE) for your business is October 1. SIMPLEs are easy to establish and maintain, and you may be eligible for a credit of up to $500 to offset the cost of filing the paperwork and getting your employees enrolled.
The maximum contribution for SIMPLE plans in 2015 is $12,500, plus an extra $3,000 when you’re over age 50.
Prefer a different retirement plan? Consider a Simplified Employee Pension plan (SEP). If you’re a sole proprietor and you requested an extension of time to file your tax return, the last day to establish and fund a SEP is October 15. For 2015, the maximum contribution is $53,000.
- IRAs. October 15 is the deadline for recharacterizing your 2014 Roth conversion.
You may want to consider “undoing” a Roth conversion if you made a mistake by converting last year, or if the value of your account is lower than when you originally made the conversion.
October 15 is also the last date to withdraw excess contributions from your IRAs and certain other retirement accounts. Putting too much money into these plans can result in an excise tax of 6%, assessed each year on the excess amount.
- Individual income tax returns. The automatic six-month extension