SEP Contributions after age 70 1/2
If I am a sole owner over the age of 70 1/2 and still working can I still make a contribution into my SEP account? Will I also still need to take my RMD?
If I am a sole owner over the age of 70 1/2 and still working can I still make a contribution into my SEP account? Will I also still need to take my RMD?
Permalink Submitted by Alan - IRA critic on Wed, 2016-01-20 16:09
Yes, for a SEP IRA or SIMPLE IRA you can still contribute after 70.5, but these accounts are also subject to RMDs.
Permalink Submitted by Toby Hartley on Tue, 2016-03-01 23:58
Is the amount contributed deductible?
Permalink Submitted by Alan - IRA critic on Wed, 2016-03-02 00:09
Yes, a SEP IRA contribution must be deductible. If it is not, there is an excess contribution. A TIRA contribution that could be either deductible or non deductible can also be made to a SEP IRA account, but not after taxpayer reaches 70.5.