Spousal IRA contribution over age 70-1/2
Both spouses over age 70-1/2, and one is still working. Can the working spouse make a deductible spousal contribution to an IRA for the non-working spouse on 2020 and beyond?
Both spouses over age 70-1/2, and one is still working. Can the working spouse make a deductible spousal contribution to an IRA for the non-working spouse on 2020 and beyond?
Permalink Submitted by Alan - IRA critic on Thu, 2020-07-02 16:33
Yes. However, be aware that deductible contributions made for the 70.5 year and beyond will compromise any QCDs made from the IRA of either spouse that made deductible contributions. For example, if the non working spouse here receives a 7000 deductible spousal IRA contribution for 2020 or later, the first 7000 made in subsequent QCDs cannot be claimed as a QCD. If this spouse makes a 10,000 QCD in 2023, the 7000 deductible contribution as well as any others made after 2020 will reduce the QCD. If only the one 7000 contribution is made, the later QCD can only be reported for 3000.