If You’re Age 70 1/2 or Older, Be Aware That a New Law has Changed the Rules for IRAs

Before 2020, traditional IRA contributions weren’t allowed once you attained age 70 1/2. Starting in 2020, new rules allow individuals of any age to make contributions to traditional IRAs, as long as you have compensation (generally, earned income from wages or self-employment).

The required minimum distribution (RMD) age has also been raised from 70 1/2 to 72. Before 2020, IRA owners were generally required to begin taking RMDs from their plans by April 1 of the year following the year they reached age 70 1/2. Contact us with questions at (973) 298-8500 or services@nisivoccia.com.