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Level 1
posted Feb 6, 2021 6:27:14 AM

IRA deductions for seniors

Can an individual make a deductible contribution to an IRA  in the year they turned 70 and a half?  Can one be made to a spouses account?  

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1 Best answer
Level 15
Feb 6, 2021 6:32:04 AM

For 2020 and later, there is no age limit on making regular contributions to traditional or Roth IRAs.

6 Replies
Level 15
Feb 6, 2021 6:32:04 AM

For 2020 and later, there is no age limit on making regular contributions to traditional or Roth IRAs.

Level 15
Feb 6, 2021 7:24:39 AM

However, making deductible traditional IRA contributions in or after the year you reach age 70½ will limit your ability to make qualified charitable distributions (QCDs) from your traditional IRAs.

Level 15
Feb 6, 2021 7:44:16 AM

and you must have earned income in order to contribute to an IRA.

Level 1
Feb 6, 2021 7:49:43 AM

Thank you both for your advise.  I was not planning on making any charitable contributions from my IRA this year, and it appears that IRS Pub 590a has not been updated for the 2020 Tax Year.

Level 15
Feb 6, 2021 8:39:26 AM

The limitations regarding deductible traditional IRA contributions made in or after reaching age 70½ apply to all future years.  QCDs are taxable until all of these contributions have beendistributed as QCDs.  For example, if after over several years you've made $12,000 in deductible contributions in or after the year that you reached age 70½, your first $12,000 of QCDs are includible in income rather than being excludible.  TurboTax as not yet implemented this limitation on QCDs.

Level 15
Feb 6, 2021 8:42:54 AM


@hnrypalmer wrote:

Thank you both for your advise.  I was not planning on making any charitable contributions from my IRA this year, and it appears that IRS Pub 590a has not been updated for the 2020 Tax Year.


The 2020 590A is still in the draft state at the IRS.

 

https://www.irs.gov/pub/irs-dft/p590a--dft.pdf