Deductions That May Not Require Payment by December 31st
1. IRA Contributions
Traditional and Roth IRA contributions can be made up to the tax filing deadline (typically April 15 of the following year).
Contribution must be designated for the prior tax year.
2. Health Savings Account (HSA) Contributions
Contributions for the prior year can be made through the tax filing deadline.
Applies even if made in the following calendar year, as long as HSA eligibility requirements were met.
3. Self-Employed Retirement Contributions
For eligible self-employed individuals:
SEP IRA contributions can be made up to the tax filing deadline (including extensions).
Solo 401(k) employer contributions may be funded after year-end (plan must be established by December 31).
4. Certain Business Expenses (Accrual-Basis Taxpayers)
If using the accrual method:
Expenses may be deductible when:
The liability is fixed
The amount is determinable
Economic performance requirements are met
Payment may occur after year-end (subject to specific IRS rules).