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This is the sixth in a series of articles describing key provisions of the SECURE Act, this one with a focus on provisions unique to Individual Retirement Accounts. This legislation includes almost 30 changes that are intended to promote the adoption of employer-sponsored retirement plans, facilitate lifetime income options, and lessen administrative burdens. Employers must modify certain aspects of plan administration (and potentially financial planning decisions) to align with the SECURE Act's more immediate changes.
1. No age limit on contributions to a traditional IRA
Prior to the SECURE Act, individuals could not make contributions to a traditional IRA after attaining age 70½, even if they still had eligible income. This prohibition applied to both deductible and non-deductible IRA contributions.
The SECURE Act amends Code Section 219 to remove the 70½ age limit on contributions to a traditional IRA. Consequently, taxpayers who have reached age 70½ may continue to make contributions to a traditional IRA so long as they have eligible income.
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