November 8, 2017
Keep in mind that all orders (phone, fax, mail) for account transactions with year-end deadlines must be received by American Funds no later than 4 p.m. Eastern time on Friday, December 29, 2017.
Requests received after 4 p.m. Eastern time will be processed on the next business day — Tuesday, January 2, 2018 — and will be reported in the 2018 tax year.
Remind your clients who are beneficiaries of an IRA that they may need to take their 2017 distributions by December 29.
For 2017, clients can gift up to $14,000 ($28,000 for married couples) without incurring tax consequences. If you have clients who want to reduce their tax liabilities for 2017, complete the appropriate form(s) and return to American Funds by December 29.
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.
Establishment. The plan must be adopted by the last day of the fiscal (plan) year. Safe harbor 401(k) plans require an initial plan year at least three months long, making October 1 the effective deadline for a plan with a calendar fiscal year.
Employee contributions. Contributions may not be made prior to the plan adoption date.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses and CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing.