I was 70 in February 2018. I made a small IRA contribution in the first quarter of 2018. Why am I being told I have a penalty? I was not 70 1/2 until August?

ransomsese — Sat, 01 Jun 2019 17:47:35 GMT

Sorry, but you need to have that contribution returned by...

macuser_22 — Sat, 01 Jun 2019 17:47:38 GMT

Sorry, but you need to have that contribution returned by the IRA custodial as a "return of excess contributions", not as a normal distribution.

You cannot contribute to a Traditional IRA at all *in the year* that you turn 70 1/2.

If not removed by the due date of the tax return, it will be subject to a 6% penalty that repeats every year that it remains in the account.