Financial Deadlines You Don’t Want to Miss in 2016

financial deadlines you don't want to miss in 2016


Here are the tax, retirement, investing, Social Security, and other deadlines for all things financial in 2016. Click here to download a printable list of these dates.

January 15

This is the final-payment deadline for estimated taxes in the 2015 tax year.
However, the IRS will give you grace if you file by Feb. 1. The sooner you can file, the better.

Jan. 15 is also the deadline to enroll for or to change individual health insurance plans that would start in February. If you don’t have health insurance for 2016, you are subject to a penalty of $695 per adult or 2.5 percent of your household income, whichever is higher.

January 31

Jan. 31 is the deadline to enroll for or to change individual health insurance plans that would start in March.

April 1

April Fools? Nope.

If you turned 70 ½ in 2015, and you didn’t take your first required minimum distribution (RMD) during 2015, then April 1, 2016 is the deadline for taking your first RMD from your retirement accounts.If you’re still working, you don’t have to take out an RMD from your current employer unless you own five percent or more of the company.

This is an important deadline. If you miss it, you will lose 50 percent of the amount that was not withdrawn. You can always ask the IRS to waive the penalty by filing a Form 5329 along with a letter of explanation, but you need to have a good reason. Usually, the IRS will waive the penalty for events such as death of an immediate family member, hospitalization or natural disaster.

April 18

We generally think of April 15 as the last day we can file taxes. Not in 2016. Because Emancipation Day falls on April 15 in Washington, D.C., April 18 is the federal tax filing deadline.

This is also the last day to make your 2015 contributions to an individual retirement account (IRA). The maximum IRA contribution is $5,500. If you are 50 or older, you can drop in an additional $1,000.

This is also the deadline for the first federal estimated tax payment of the 2016 tax year. You can always choose to have taxes withheld from your retirement income, like your IRA distributions or Social Security checks. Be careful: If you don’t make a payment, you will be subject to penalties and interest for missing the deadline.

April 30

The “file and suspend” strategy is going away from Social Security. The file and suspend strategy allows a spouse reaching full retirement age to claim benefits, then immediately suspend them. By suspending them, the benefits can sit and grow at eight percent while the couple uses spousal benefits. If you want to use this strategy, you’ll have to file and suspend before April 30.

Not only is the “file and suspend” strategy going away, so is the “restricted application” strategy, which basically lets you apply for spousal benefits while leaving your own benefit alone to grow at eight percent a year until you turned 70. However, if you’re 62 or older, you can still use the strategy.

June 15

The second federal estimated tax payment is due. Be careful: If you don’t make a payment, you will be subject to penalties and interest for missing the deadline.

June 30

If you have retired with more than $10,000 in a foreign bank account in 2015, you must file a FinCEN Form 114 with the Treasury Department by this day. If you don’t, you’re facing huge penalties.

Keep in mind that this deadline is getting bumped up to April 15 next year (2017).

September 15

The third federal estimated tax payment is due. Be careful: If you don’t make a payment, you will be subject to penalties and interest for missing the deadline.

Click here to download a printable list of these dates.

September 30

If you inherited an IRA or Roth IRA in 2015, you need to make sure that whatever portion was allocated to a charity or organization gets there by this date. Otherwise, the account might have to be drained within five years after the original owner’s passing.

October 15

Open enrollment begins for private Medicare Part D prescription-drug plans and Advantage plans.

October 17

If you filed for a six-month tax extension, your 2015 tax return is due.

You can also reverse a conversion on your Roth IRA up to this date. That means the money in your Roth IRA account will be moved to a traditional IRA, and you won’t owe income tax once you’ve converted.

November 1

Federal and state health care exchanges will begin opening for enrollment for 2017 coverage.

December 7

Enrollment for private Medicare Part D prescription-drug plans and Advantage plans closes.

December 31

The second required RMD is due, even if you took the first out on April 1.

If a loved one has passed away this year, and multiple beneficiaries inherited an IRA, be sure to split the account by this time. Otherwise, withdrawals will be based on the oldest beneficiary’s life expectancy.

If you want to have a 2016 charitable tax deduction, you have to make a contribution by this date. You can make a last-minute donation on credit card or to a donor-advised fund.

January 15, 2017

The fourth and final federal estimated tax payment for 2016 is due.

There you have it: the 2016 financial deadlines. Click here to download a printable list of these dates.

And remember, if you’re serious about getting your financial house in order, but you aren’t sure where to begin, financial advisors are available at McLean Asset Management who can get you started with a long-term portfolio. Schedule a meeting today to find out more!

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McLean Asset Management Corporation (MAMC) is a SEC registered investment adviser. There are many different interpretations of investment statistics and many different ideas about how to best use them. Past performance is not indicative of future performance. The information provided is for educational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy or sell securities. There are no warranties, expressed or implied, as to accuracy, completeness, or results obtained from any information on this presentation. All investments involve risk.

The information throughout this presentation, whether stock quotes, charts, articles, or any other statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe to be reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Neither our information providers nor we shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in the transmission there of to the user. MAMC only transacts business in states where it is properly registered, or excluded or exempted from registration requirements. It does not provide tax, legal, or accounting advice. The information contained in this presentation does not take into account your particular investment objectives, financial situation, or needs, and you should, in considering this material, discuss your individual circumstances with professionals in those areas before making any decisions.

The content of this publication reflects the views of McLean Asset Management Corporation (MAMC) and sources deemed by MAMC to be reliable. MAMC is a SEC registered investment adviser. There are many different interpretations of investment statistics and many different ideas about how to best use them. Past performance is not indicative of future performance.

The information contained in this presentation does not take into account your particular investment objectives, financial situation, or needs, and you should, in considering this material, discuss your individual circumstances with professionals in those areas before making any decisions.

 

McLean Asset Management Corporation (MAMC) is a SEC registered investment adviser. The content of this publication reflects the views of McLean Asset Management Corporation (MAMC) and sources deemed by MAMC to be reliable. There are many different interpretations of investment statistics and many different ideas about how to best use them. Past performance is not indicative of future performance. The information provided is for educational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy or sell securities. There are no warranties, expressed or implied, as to accuracy, completeness, or results obtained from any information on this presentation. Indexes are not available for direct investment. All investments involve risk.

The information throughout this presentation, whether stock quotes, charts, articles, or any other statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe to be reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Neither our information providers nor we shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in the transmission there of to the user. MAMC only transacts business in states where it is properly registered, or excluded or exempted from registration requirements. It does not provide tax, legal, or accounting advice. The information contained in this presentation does not take into account your particular investment objectives, financial situation, or needs, and you should, in considering this material, discuss your individual circumstances with professionals in those areas before making any decisions.