Darren is eligible to contribute to a traditional 401(k) in 2014. He forgot to contribute before year end. If he contributes before April 15, 2015, he is allowed to treat the contribution as though he made it during 2014.

Question

Quizplus · Accepted Answer

The IRS allows for contributions to a traditional 401(k) to be counted as if they were made in the previous tax year if they are made before the tax filing deadline, which is April 15 for most taxpayers. This is known as an "IRA deadline extension" or "IRA contribution extension" and applies to traditional IRAs as well as traditional 401(k)s. Therefore, Darren can still contribute to his traditional 401(k) and treat it as though he made the contribution during 2014.

Darren Is Eligible to Contribute to a Traditional 401(k) in 2014