New Rule for Retirement Plans

The Consolidated Appropriations Act 2020 (CAA), signed by the president 12-20-2019, has created some . Here’s one you may need to know:  effective for tax years beginning after 2019, individuals are no longer prohibited from contributing to traditional IRAs past age 70½.

Under pre-CAA law, no contribution was allowed to a traditional IRA for the benefit of an Individual who was age 70½ before the close of the tax year for which the contribution was made.

Effective for contributions made for tax years beginning after 2019, the CAA provides that individuals may contribute to a traditional IRA after 70½.

In other words, for tax years beginning in 2020, there is no longer an age limitation on contributions to a traditional or Roth IRA.