Age 73 retired mid year 2016. Can still contribute 2016 SEP IRA?
Age 73. Was actively working Self Employed/K-1 with Income subject to SE taxes and taking RMD. Worked in 2016 Jan-June and retired. Is the 2016 Contribution allowed since there was income Jan-June? Or Since as of 12/31/2016 retired and over age 73 no contribution is allowed for 2016.
Permalink Submitted by Alan - IRA critic on Thu, 2017-07-27 20:35
A 2016 contribution is allowed based on the net earnings from SE reported on the 2016 return. An extension needed to be filed to still make a 2016 SEP contribution. With SEP and SIMPLE IRAs, contributions are still allowed despite RMD distributions being required for the same year.