IRA deductibility eligibility

Submitted by john bellavita on Thu, 2020-04-30 16:57

I believe the new IRA tax law applies in tax year 2020, rather than tax year 2019.

I became 70 and a half on January 15th, 2020. I want to put money into an IRA NOW, for tax year 2019. I have sufficient earned income. My question is twofold:

1. Can I make a contribution now for tax year 2019, even though I am older than 70 and a half?

2. If I can, assuming I have sufficient earned income, can that contribution be deductible?

Thank you very much for your help in this matter.

John Bellavita



Submitted by Alan - IRA critic on Thu, 2020-04-30 19:00

  • Yes, you were not 70.5 in 2019, so you can still make a 2019 contribution up till 7/15/2020, and the contribution can be deductible subject to the usual rules. 
  • Further, the Secure Act now allows you to make TIRA contributions without an age limit, therefore if you have earned income in 2020 you can make a 2020 contribution as well. That said, if you deduct a 2020 or later year contribution, these amounts reduce any QCDs you would make this year or in the future. Therefore, you might be better off making a Roth contribution from here on out unless you do not plan on making any QCDs.

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