Making IRA contributions after 70 1/2
Male dob 10/1/1947 has an IRA as his only retirement account and is still working in his 100% owned small business. If he takes his RMD based on age 71 in 2018, can he make his deductible contribution for tax year 2017? What about going forward? Thanks
Permalink Submitted by Alan - IRA critic on Wed, 2017-10-04 00:00
He can make a 2017 regular contribution because he is not yet 70.5 in 2017. His first RMD year for which he must take an RMD is 2018. However, if he had a SEP or SIMPLE IRA for his small business, he could continue to make contributions to those IRAs as long as he continued to work, but would have to take RMDs as well.