There is no longer a maximum age for making IRA contributions.
Contributions to traditional IRAs, which enable employees and the self-employed to save for retirement, are generally tax deductible. Taxpayers can file their 2020 return claiming a traditional IRA contribution, even if that contribution has not yet been made, provided the contribution will occur by April 15.
Eligible taxpayers can contribute up to $6,000 to an IRA for 2020. For someone who was 50 years of age or older at the end of 2020, the limit is increased to $7,000. Previous restrictions that applied to taxpayers 70 ½ years of age or older were removed in 2020.
However, if a taxpayer is covered by a workplace retirement plan, the deduction for contributions to a traditional IRA is reduced depending on the taxpayer’s modified adjusted gross income.
Single or head of household filers with income of $65,000 or less can take a full deduction up to the amount of their contribution limit. For incomes more than $65,000 but less than $75,000, there is a partial deduction and after $75,000 or more there is no deduction.
Filers that are married filing jointly or a qualifying widow(er) with $104,000 or less of income, a full deduction up to the amount of the contribution limit is permitted. Filers with more than $104,000 but less than $124,000 can claim a partial deduction. If their income is at least $124,000, no deduction is available.