Advanced Underwriting Consultants

Question of the Day – April 11

Ask the Experts!

Here’s the question of the day.

Question: My 53 year old client died suddenly in January of this year.  I am working with the widow, and she wants to know if she can make an IRA contribution on the client’s behalf for 2011?

Answer: The IRS says no.

The IRS decided in a 1984 private letter ruling that an IRA contribution couldn’t be made on the taxpayer’s behalf at any time after the date of the taxpayer’s death.  Here’s a link to the ruling:

Even though a private letter ruling can’t be relied on as final law, it does indicate how the IRS looks at the particular tax issue involved.

Have a question for the professionals at AUC?  Feel welcome to submit it by email.  We may post your question and the answer as the question of the day.