2020 Traditional IRA contribution

Forum|Forum|5 years ago
March 31, 2021
1 reply
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My husband is 70-1/2 years old, and has been 70-1/2 for quite a few years. I turned 70-1/2 in 2020. Per the Secure Act, in 2020, it seems my husband is now entitled to make a contribution to his Traditional IRA. He had $13,000 of wages. I had no earned income. Neither of us are covered by an employer funded pension plan at work. I am using Premier to prepare my 2020 return. The program is telling me he is not eligible to make a Traditional IRA contribution. We both have established Traditional IRAs, and would like to make contributions.

My understanding is his employment would entitle us both to a Traditional IRA deduction. The Secure Act lifted the age restriction on Contributing to Traditional IRAs. I do not understand why TurboTax is indicating only I am entitled to a Traditional IRA deduction on our 2020 return. Under the Secure Act, it seems to me he is also eligible. The message I receive in Premier within the IRA calculator is he cannot make a Traditional IRA contribution because he is over 70-1/2.

Thanks for any assistance.

MinhT1

Level 15

Yes, the Secure Act now allows contributions to an IRA at any age if you have earned income and are not limited by your MAGI.

You can contribute to a Spousal IRA based on your husband's earned income.

Your husband still have to take RMDs every year (except in 2020 when RMDs are waived).

You have to start taking RMDs when your turn 72.

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lshalsorAuthor

Level 2

Thank you for the response, however, the Premier calculator keeps telling me my husband cannot make the contribution.

It seems the Premier IRA calculator need to be corrected. Do you agree?

ReneeM7122

Level 9

According to IRS rules, the annual contribution limit for 2019, 2020, and 2021 is $6,000, or $7,000 if you’re age 50 or older. According to the contribution limits,

For 2021, 2020 and 2019, the total contributions you make each year to all of your traditional IRAs and Roth IRAs can't be more than: