IRA written on a jar with dollars.April 15th, 2020 is not only America’s Tax Day, but it’s also the deadline for contributing to an IRA for calendar 2019.

The deadline for your clients to make contributions to their IRAs is almost here. The maximum this year is $6,000 for those under age 50; older clients may add another $1,000. Contributions for 2019 have to be postmarked by April 15th. Contributions may not exceed what your clients earned, and for the most part, the contribution must have been “earned income” to be contributed to an IRA.

Remember: those clients who haven’t yet maxed out their IRA contributions are allowed to deduct from their 2019 taxes their non-Roth IRA contributions; that little bit of incentive should get them to make their move quickly, and they’ll appreciate the reminder.

Speaking of reminders: the $5,000 contribution to their IRA retirement will earn 7 percent annually for the next five years, making it a grow to a bit more than $7,000 by 2025. And if your client lets this year’s $5,000 contribution stays in the IRA untouched for two decades, it will be worth more than $19,000.

Here’s another important reminder your clients will really appreciate: a new federal law known as the SECURE Act (Setting Every Community Up for Retirement Enhancement) changed the age for mandated Required Minimum Distribution from IRAs. The SECURE Act lifts the age from 70½ to 72, effective this year. That means if a specific client wasn’t 70½ (or older) by December 31, 2019, he may wait to take his initial RMD until age 72. If that client was 70½ at the end of 2019, the previous law applies, and his initial RMD deadline is April 1, 2020. His second RMD will be due December 31 this year.

Deadlines are important, and they can either enrich your client or create confusion and financial complications. A timely word of advice can go a long way in building trust, respect and reliance.