IRA

[vintagetraveler]

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

[DoninGA]

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able to make contributions to your traditional IRA for the year in which you reach age 70½ and all later years has been repealed.

[vintagetraveler]

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  ?    

[Critter-3]

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.  

[DoninGA]

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@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  ?    

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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

[vintagetraveler]

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?

[DoninGA · Accepted solution]

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@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?

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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.

[Critter-3]

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.