Traditional IRA contribution

[luv2fish]

I am still employed but over 70.5 years old. Turbo Tax is telling me that I cannot make a Traditional IRA contribution because of my age even though I still have earned income well in excess of the contribution limit. The IRS says I can. Why is that? Do I just ignore that portion of Turbo Tax and continue with my filing? Is this a bug in Turbo Tax?

[macuser_22]

There is no bug.   The new law that allows Traditional IRA contribution for any age applies to 2020 and later contributions.  For 2019 any Traditional IRA contribution for 2019 is prohibited if 70 1/2 or older in 2019.

You can make a 2020 contribution (if your income qualifies) and report that next year on your 2020 tax return, but not 2019.

Per the IRS Pub 590A

Maximum age for making traditional IRA contributions repealed. 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to make contributions to your traditional IRA for the year in which you reach age 70 1/2 and all later years has been repealed.

[luv2fish]

Thank you very much.

[rhmny1]

Using the turbo tax IRA Calculation Tool, it still says there is no qualification if over age 701/2.  Looks like the program needs to be updated.

[SamS1]

Noted. For 2020 and later, there is no age limit on making regular contributions to traditional or Roth IRA if you qualify to make a contribution based on income.

The pandemic has affected your taxes in many ways. Including reporting in TurboTax the amount of stimulus money you received. Click Here for more information on how the Pandemic affected your 2020  taxes.