As we approach the tax filing deadline, we want to make you aware of an important operational change from the U.S. Postal Service (USPS) that may impact your clients’ ability to make timely Prior Year IRA Contributions.
What’s Changed
USPS has clarified that postmarks now reflect when mail is processed at a facility, not when it is dropped in a mailbox. As a result, mail deposited on or near the tax deadline may receive a later postmark date, potentially causing contributions to be considered late.
Why This Matters
For clients making Prior Year IRA Contributions, contributions must be postmarked by the tax filing deadline to be eligible. A delay in processing could unintentionally disqualify an otherwise timely contribution.
How to Help Your Clients Avoid Issues
To eliminate this risk, we strongly encourage the use of electronic funding methods:
- Mobile Check Deposit (Wealthscape Investor App)
Clients can securely submit contributions up to the deadline without relying on mail timing. - Electronic Funds Transfer (EFT)
Clients with established Standing Payment Instructions (SPI) can quickly and reliably fund contributions directly from their bank accounts.
Best Practice
Please proactively reach out to clients who may still be planning to mail contributions and guide them toward these digital options to ensure timely processing and avoid unnecessary complications.
If you have any questions, please reach out to our Brokerage and Advisory Operations Specialists at 1-800-344-7437.
Thank you for your partnership in delivering a smooth and reliable client experience during tax season.
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