topic Re: IRA in Self employed

IRA

vintagetraveler — Wed, 27 Oct 2021 17:08:03 GMT

I turned 70 this year and will be 70-1/2 in February 2022. Can I take an IRA this year?

Re: IRA

DoninGA — Wed, 27 Oct 2021 17:11:10 GMT

Do you mean can you contribute to a Traditional IRA?

For tax years beginning after December 31, 2019, the rule that you are not able to make contributions to your traditional IRA for the year in which you reach age 70½ and all later years has been repealed.

Re: IRA

vintagetraveler — Wed, 27 Oct 2021 17:29:09 GMT

So does that mean I can still take out an IRA each year as a tax deduction? At age 70-1/4 and next year at age 70-1/2 ?

Re: IRA

Critter-3 — Wed, 27 Oct 2021 17:31:24 GMT

It means as long as you have earned income you can continue to make deductible IRA contributions every tax year even when you are required to start taking distributions when you turn 72.

Re: IRA

DoninGA — Wed, 27 Oct 2021 17:32:25 GMT

@vintagetraveler wrote:

So does that mean I can still take out an IRA each year as a tax deduction? At age 70-1/4 and next year at age 70-1/2 ?

Yes, as long as you have taxable compensation you can contribute to an IRA and the contribution may be deductible. Contributions to a Roth IRA are not deductible.

Go to this IRS website for information on IRA contributions -

https://www.irs.gov/retirement-plans/ira-deduction-limits

Re: IRA

vintagetraveler — Wed, 27 Oct 2021 17:58:49 GMT

Since I am older, I can contribute $7,000 to an IRA in 2021, correct? My spouse is not working, can I contribute more for my spouse or can my spouse (age 76) take out an IRA based on my income?

Re: IRA

DoninGA — Wed, 27 Oct 2021 18:08:58 GMT

@vintagetraveler wrote:

Since I am older, I can contribute $7,000 to an IRA in 2021, correct? My spouse is not working, can I contribute more for my spouse or can my spouse (age 76) take out an IRA based on my income?

Assuming that you will have enough taxable compensation for the year, you can contribute up to $7,000 to your IRA and you can contribute up to $7,000 to your spouse's IRA.

Re: IRA

Critter-3 — Wed, 27 Oct 2021 18:09:52 GMT

Again ... as long as you have enough earned income to cover your IRA and/or your spousal IRA contributions you can make them until you die.