Over the past 20 years, the share of Americans working in their 70s has risen from less than 10% to nearly 15%, according to US Census bureau data.

As a result, people over 70 can now make contributions to traditional IRAs beyond the previous age limit of 70½ years, thanks to the SECURE Act. Additionally, there is no age restriction for opening a new, traditional IRA and fund it via a rollover or transfer from an eligible retirement account.

Maximum age limit for making IRA contributions was repealed.

For tax years beginning after 2019, the rule that you are not able to make contributions to your traditional IRA for the year in which you reach age 70½ and all later years has been repealed.

Now there is no age limit on making IRA contributions to the following accounts:

  • Traditional IRAs: You can now make IRA contributions after age 70 1/2. However, Required Minimum Distribution rules still apply at 70 1/2 or 72, depending on when you were born.
  • Roth IRAs: There is no age limit. So long as you or your spouse earns income, you can continue to make contributions indefinitely. There are no RMDs Unlike during the account holder’s lifetime. However, the account’s beneficiaries may need to take RMDs to avoid penalties.
  • SEP IRAs: There is no age limit. Employers can contribute to your plan no matter how old you are. But you must start taking RMDs at age 72 (70 1/2 if you reach 70 1/2 before January 1, 2020).
  • SIMPLE IRAs: There is no age limit. And employers must continue to make matching or non-elective contributions to your plan regardless of your age. However, you still need to take RMDs at age 72 or 70 1/2, depending on your birthday.

Learn more about IRA contributions after age 70 on the uDirect IRA Services website HERE.  Be sure to discuss your contribution plans with a competent tax professional.