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Can a 73 year old contribute to a sep ira?

Employers can contribute to your plan no matter how old you are. However, you should start taking RMD at age 72 or 70 or 5, depending on the year you were born. While SEPs are fairly simple, there are some rules that may surprise you. For example, if you have an IRA Gold account, you may be able to make larger contributions than with other types of retirement accounts.

How an SEP works. Contributions, which are tax-deductible for the company or individual, go toward a traditional IRA set by the employee. Although earned income is required to make an IRA contribution, income limits apply to IRA contributions regardless of age. In addition, traditional IRA investments benefit even less from that tax-protected capitalization than contributions to Roth IRAs, since traditional IRAs are subject to RMDs that are ultimately subject to taxation. Roth IRA, minimum required distribution, tax planning, RMD, IRS, IRA, 401 (k), inherited IRA, Mailbag, Ed Slott, IRA contribution, retirement planning, IRA conversion, IRA renewal, qualified IRA distribution, IRA distribution, IRA beneficiary, Marvin Rotenberg, 60-day IRA renewal, 10 percent fine.

When in doubt, IRA owners should consult with a competent tax advisor to determine if the income is eligible for an IRA contribution. One of the main advantages of an SEP IRA over a traditional or Roth IRA is the high contribution limit. Traditional IRA contributions later in life can also make sense if the person earns too much to contribute directly to a Roth IRA; in that case, the taxpayer can take advantage of the clandestine Roth IRA maneuver, fund the traditional IRA, and then convert it to Roth. The contribution limits for traditional IRA contributions that you can deduct on your tax return are the strictest; Roth IRA contributions are allowed with a higher income limit.

If you make a contribution to an SEP IRA during the year, you can still contribute to a Roth IRA or a traditional IRA during the same year, as long as you're eligible. Jeffrey Levine, an expert in tax and financial planning, described traditional IRA contributions after the RMD era as something like a revolving door of IRA money. However, despite the fact that the Security Act raises the age limit for traditional IRA contributions, IRA contributions continue to have restrictions. The IRS restricts the amount that IRA owners can contribute to IRAs in a given year, subject to cost-of-living adjustments.

However, while Roth IRAs or corporate retirement plans tend to be better receptacles for additional contributions from older workers, a traditional IRA may be appropriate in a handful of situations. Nor is there any age restriction if you are setting up a new IRA to which you will transfer or transfer assets from another IRA or from an eligible retirement plan, such as an employer-sponsored plan, such as a 401 (k). However, you can still contribute to a Roth IRA and make cumulative contributions to a Roth or traditional IRA, regardless of your age. When filing federal income taxes together with their spouse, people who have little or no eligible compensation can make contributions to the traditional IRA or Roth IRA to their own IRAs based on their spouse's income.