IRA contrib in the year of turning 70 1/2…
Am I correct that you cannot make a deductible IRA contribution in the year you turn 70 1/2 years old? My client hasn’t yet turned 70 1/2, but will later this same calendar year and will have earned income for 2010.
Permalink Submitted by Alan Spross on Thu, 2010-01-21 21:07
You are partially correct, but client cannot make a TIRA contribution whether deductible or non deductible.
If client is not over the income limits, a Roth IRA contribution is possible for 2010. Also, if client did not fund a 2009 contribution, a 2010 contribution can be made FOR 2009 because he was not yet 70.5 in 2009.