IRA contributions after age 70 1/2

Submitted by Craig LeBouef on Mon, 2020-11-09 21:44

From Slott Oct newsletter – IRS Issues SECURE Act Guidance:

The SECURE Act
eliminated this rule beginning in
2020 and has permitted individuals
who are age 70½ or older to make
traditional IRA contributions.

For the contribution to be tax-deductible, does the individual have to have earned income (as in the past)?

Permalink Submitted by Alan - IRA critic on Mon, 2020-11-09 22:36

Earned income is needed to make any IRA contribution, whether deductible or not. Deduction is based on modified AGI and whether the person is participating in a workplace plan.
Be aware that there is a punitive anti abuse rule when making deductible TIRA contributions attaining 70.5 or beyond IF the person plans to do QCDs currently or in the future. The amount of deductions claimed will reduce the dollar value of QCDs made (but not below 0) until those QCD reductions have added up to the total of TIRA deductions.