Nicholas Scheibner is quoted on this topic in an article in NJMoneyHelp.com by Karin Price Mueller, originally published on January 30, 2020.
A 30-second read by Nicholas Scheibner, CFP®: The SECURE Act changes the rules for workers who are over age 70 ½. If you have earned income, you can contribute to your IRA at any age.
For 2019 tax purposes, unfortunately, you will not be able to make a deductible contribution if you are over age 70 ½. The old rule still applies. However, you can start making contributions starting in 2020. If you would like to make a contribution, you will still need earned income for that year.
Make sure you are also not falling into a “double dip” if you are using your IRA to make Qualified Charitable Distributions while also contributing to your IRA. A QCD allows a 70 ½- year-old IRA owner to distribute funds from their IRA directly to charity tax-free.
With the SECURE Act, QCDs may be reduced by the total IRA contributions after age 70 ½. This was a feature of the law that attempts to stop people age 70 ½ or older to make both a deductible IRA contribution and benefit fully from a QCD in the same year.
As always, any financial decision should be made with your full financial picture in mind. Consult your financial advisor or tax professional before making any contributions.
Disclosure: This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction. Past performance is no guarantee of future results. Every investment strategy has the potential for profit or loss. This material is not intended to be relied upon as a forecast, research, tax or investment advice. Please consult your tax planning professional for personal tax advice.