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Question: My client turns 70 ½ later this year.  Can she make a deductible IRA contribution for 2012?

Answer:  No.  Here’s an excerpt from IRS Tax Topic 451:

To contribute to a traditional IRA, you must be under age 70 1/2 at the end of the tax year.

Any contributions made to a traditional IRA for the year an individual attains age 70-1/2 or later is considered an excess contribution.  Excess contributions are not deductible, and are subject to a 6% excise tax.  The excise tax is an annual penalty that is imposed for as long as the excess contribution remains in the IRA.

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