How do I make a contribution to my IRA?

How do I make a contribution to my IRA?

Annual IRA contributions follow a two-step process: funds are deposited to your IRA account at IRA Resources first, then directed from the IRA into your LLC or trust checking account. Contributions must never be deposited directly into the LLC or trust; the funds must flow through the IRA custodian to maintain the integrity of the plan.

Step 1: Deposit funds to your IRA at IRA Resources

To make a contribution, complete an IRA Resources Deposit Coupon to document the transaction. How you submit it depends on how you send the funds:

  • By check: Mail your check along with the completed Deposit Coupon to IRA Resources.
  • By wire: Wire the funds to IRA Resources and submit the Deposit Coupon online.

IRA Resources will apply the deposit to your IRA account once received.

Step 2: Direct funds from the IRA to your LLC or trust

Once the contribution has settled in your IRA, submit a Buy Direction Letter to IRA Resources instructing them to invest the funds into your LLC or trust. This moves the capital from the IRA into your entity checking account, where it is available for investing.

How long does it take?

The timeline depends on how funds are moved at each step:

  • Fastest path (wire at both steps): Funds can be available in your entity checking account in a few business days.
  • Slowest path (mailed checks at both steps): Allow up to two weeks from the time you mail your contribution.

Confirm your eligibility before contributing

IRA contribution eligibility depends on your income, tax filing status, and whether you or your spouse participate in an employer retirement plan. Confirm your eligibility and deductibility with your tax advisor before making a contribution, as overcontributions carry a 6% annual excise tax until corrected.

Need help?

Contact IRA Resources directly for assistance with the Deposit Coupon, wire instructions, or the Buy Direction Letter process.

Frequently Asked Questions

Can I deposit my contribution directly into my LLC or trust checking account?
Absolutely not. Contributions must be deposited to the IRA account at IRA Resources first. Depositing directly into the LLC or trust bypasses the custodial layer and can have severe tax consequences.

What is a Buy Direction Letter?
A Buy Direction Letter is an instruction form submitted to IRA Resources directing them to invest IRA funds into a specific asset, in this case, your LLC or trust. It is a required step each time you move funds from the IRA into your entity checking account.

Is there a deadline for IRA contributions?
Deadlines vary by account type. For Traditional and Roth IRAs, contributions must be made by April 15 of the following year; no extensions are available. For SEP IRAs, contributions may be made up to the tax filing deadline of the business, including extensions, which can extend the deadline to October 15. SIMPLE IRA employee deferrals are made through payroll during the plan year; employer contributions follow the business tax filing deadline including extensions. 

Can I make contributions to both a Traditional and Roth IRA in the same year?
Yes, but the combined total across both accounts cannot exceed the annual IRA contribution limit. 

Disclosure

This information is provided for educational purposes only and should not be interpreted as tax, legal, or investment advice. Readers are encouraged to consult a qualified professional who can offer guidance based on their personal situation.

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