IRA contributions at age 80+
I read your recent informative column on retirement accounts. i am retired, age 81. My wife,74,
retired in 2022 but went back to work part time in 2023. She earns about $2000 a month.
I understand that each of us can contribute up to $7500 to a traditional IRA. Our AGI exceeds
the limit requirements for Roth contributions.
Are these IRA contributions tax deductible?
If so, can I dump the contributions into current IRA ‘s or do I have to open separate new accounts?
We file our taxes jointly. If they are not tax deductible, are there any pros for adding to current
IRA’s?
Terry Says
You probably don’t need the tax deductions now. And you’re already taking Required Minimum Distributions. So no sense adding to those old accounts.
But yes, since you each have earned income, you can each open a Roth IRA — where all the money will grow tax-FREE and doesn’t have to be distributed. There is no tax deduction for a Roth contribution, but it’s still a good idea.
Make sure you have named a correct beneficiary for each account — the old ones and the new ones you decide to open.
And, though you didn’t ask, please make sure you have a current “estate plan” and a healthcare power of attorney.
