Postponed Deadlines for Time-Sensitive Acts for Victims of Federally Declared Disasters

“Affected taxpayers” who are victims of certain federally declared disasters are eligible for postponed deadlines for the completion of eligible time-sensitive acts, many of which are related to IRAs, employer plans, HSAs, or Coverdell ESAs, when the original deadline falls within a given date range. For example, the IRS recently issued GA-2023-01 and AL-2023-01 which provides “affected taxpayers” of straight line winds and tornadoes in Georgia and Alabama relief with postponed May 15th deadlines for the completion of certain time-sensitive acts many of which are related to IRAs, employer plans, HSAs, or Coverdell ESAs. Under the relief, time-sensitive acts referenced in notice with a due date to be performed on or after January 12, 2022, and before May 15, 2023, are postponed until May 15, 2023. The May 15, 2023, postponed deadline includes the deadline for making 2022 IRA and HSA contributions. As a result, affected taxpayers of straight line winds and tornadoes in Georgia and Alabama straight-line winds will have until May 15, 2023, to make 2022 IRA, HSA and Coverdell ESA contributions. 

Affected Taxpayers Currently Eligible for Postponed Deadlines 

The chart below summarizes recent disaster areas (as of January 24, 2023), in which affected taxpayers qualify for postponed time periods to complete eligible time-sensitive acts. Up-to-date details of who is considered an affected taxpayer for each declaration, as well as any additional disasters or extension can be found here. 

Time-Sensitive Acts 

The time-sensitive acts identified that are eligible for the extended deadline include any action listed in either Treasury Regulation 301.7508A-1(c)(1) or Revenue Procedure 2018-58.  Some of the time-sensitive acts relating to IRAs, employer retirement plans, HSAs and Coverdell ESAs with a due date that falls within these timeframes may include but are not limited to the following transactions. 

IRAs 

• Make Traditional and Roth IRA contributions for tax year 2022 
• File Form 1099-R with the IRS 
• Provide to IRA owners and beneficiaries copy of Form 1099-R 
• Provide IRA owners with RMD statements 
• Provide IRA owners and beneficiaries Fair Market Value Statement 
• Withdraw required minimum distributions 
• Determine an employee’s designated beneficiaries in the year following the employee’s death (certain timing requirements apply)
• Complete rollovers including an IRA-to-IRA 60-day rollover, a 60-day indirect rollover from an eligible employer plan to an IRA, a rollover within 120 days of a first-time home distribution withdrawn from an IRA that meets certain requirements, and a rollover of a wrongful IRS levy of an IRA or employer retirement plan 
• Use IRA distributions within 120 days of the distribution to qualify for the first-time homebuyer early distribution penalty exception 
• Repay qualified reservist distributions 
• Withdraw substantially equal periodic payments from an IRA 
• Make a qualified disclaimer 
• Certain QLAC transactions 
• Make SEP and SIMPLE IRA contributions 
• Remove an IRA excess contribution with earnings attributable to avoid the 6% excess contribution penalty 
• Recharacterize a Traditional or Roth IRA contribution 

HSAs 

• Make HSA contributions for tax year 2022 
• Complete a 60-day HSA-to-HSA rollover 
• File Form 1099-SA with the IRS 
• Provide to HSA owners and beneficiaries copy of Form 1099-SA 

Coverdell ESAs 

• Make Coverdell ESA contributions for tax year 2022 
• Complete a 60-day ESA-to-ESA 
• File Form 1099-Q with the IRS 
• Provide to Responsible Individuals and Designated Beneficiaries copy of Form 1099-Q 

Qualified Plans 

• Make corrective distributions of excess deferrals, excess contributions, and excess aggregate contributions 
• Make timely permissible withdrawals of unwanted deferrals under an eligible automatic contribution arrangement (EACA) 
• File form 5500 
• Make plan loan repayments “quarterly or more frequently” 
• Make an indirect rollover of an eligible rollover distribution (ERD)