Upcoming Year-End Deadlines | American Funds

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News

November 4, 2016

Upcoming Year-End Deadlines

Many of your clients may have important year-end deadlines approaching.

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 30, 2016.

Requests received after 4 p.m. Eastern time will be processed on the next business day — Tuesday, January 3, 2017 — and will be reported in the 2017 tax year.

Key Deadlines to Review With Clients

Required Minimum Distributions (RMDs)

Clients who are age 70½ or older must take their 2016 IRA distribution(s) by December 31. For clients taking their first RMD payment, the distribution can be delayed until April 1.

Learn more:

RMD for Retirement Plan Owners Age 70½ and Older

Manage Individual Retirement Accounts

Beneficiary Distributions

Remind your clients who are beneficiaries of an IRA that they may need to take their 2016 distributions by December 30.

Gift of Shares

For 2016, 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 2016, complete the appropriate form(s) and return to American Funds by December 30.

Forms:

Gift of Shares to an Individual (PDF)

Gift Transfer of Shares to a Charitable Organization (PDF)

Other Deadlines to Keep in Mind

Traditional IRAs, Roth IRAs and Coverdell Education Savings Accounts

Contributions for the 2016 tax year must be made by Tuesday, April 18, 2017.

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

Learn more:

IRAs

Coverdell Education Savings Accounts

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

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. 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.

 

Learn more:

401(k) and 403(b) Retirement Plans


This material is intended for use by financial professionals or in conjunction with the advice of a financial professional.

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.