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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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