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Old 11-24-2018, 01:43 PM
Location: Grove City, Ohio
10,137 posts, read 12,395,557 times
Reputation: 13986


I am 70 and last year I contributed the max $6,500 into my IRA account.

On January 1st I will still be 70 years old but short of my 70 1/2 year mark when I understand I must start taking money out of my account.

Am I correct in understanding that next year, before I turn 70 1/2, that I contribute my final $6,500 to my IRA account?

I must start taking money at 70 1/2 which means what exactly? Does it mean at age 70 1/2 I must take some money out or do I have before my 71st birthday or 70 1/2 to take it out or to the end of 2019 seeing as how I was short of my 70 1/2 year at the beginning of 2019?

Update: Just saw where the magical birthday is after June 30th.
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Old 11-24-2018, 02:17 PM
Location: In the land beyond Ohare!
918 posts, read 471,028 times
Reputation: 1995


Beginning date for your first required minimum distribution
IRAs (including SEP and SIMPLE IRAs)
April 1 of the year following the calendar year in which you reach age 70.

See the chart comparing IRA and defined contribution plan RMDs.

Date that you turn 70
You reach age 70 on the date that is 6 calendar months after your 70th birthday.

Example: You are retired and your 70th birthday was June 30, 2017. You reached age 70 on December 30, 2017. You must take your first RMD (for 2017) by April 1, 2018.

Example: You are retired and your 70th birthday was July 1, 2017. You reached age 70 on January 1, 2018. You do not have an RMD for 2017. You must take your first RMD (for 2018) by April 1, 2019.
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Old 11-24-2018, 02:21 PM
Location: Idaho
1,455 posts, read 1,157,295 times
Reputation: 5503
You can find the answers to your questions here


Roth IRA: There is no upper age limit to make a contribution to a Roth IRA. You must have earned income though. So, if neither your or your spouse are working then you cannot contribute to a Roth regardless of age.

Traditional IRA: For a Traditional IRA, once you reach the year in which you turn age 70 you are no longer eligible to make a Traditional IRA contribution.
and here

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Old 11-24-2018, 02:54 PM
Location: OH>IL>CO>CT
5,238 posts, read 8,417,308 times
Reputation: 7191
Be careful of the timing of the first RMD after 70.5

If you wait until Jan thru April 1st (not 15th) of the following year, must take your 2nd RMD by Dec 31 of the same year, resulting in a tax hit on 2 RMDs for the same tax year.

All RMDs, after the first, must be taken by Dec 31.

All RMDs are based on the account balances of the previous tax year (ie 2018's tax year w/d is based on 2017's balances)

BTW, your account custodian should provide you with these same details, when it comes time.
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Old 11-24-2018, 03:34 PM
1,670 posts, read 573,971 times
Reputation: 3127
^^ What reed303 said.

I am going to take my first RMD in "year 70" precisely in order to avoid that little pitfall, even though I would be eligible to defer it to the following calendar year.

Several years ago I broke up a single IRA CD into four equal separate ones and staggered the maturity dates so that, starting next year, one will mature in May of each year from now on. From whatever CD matures each year I will take the required RMD and roll the remaining balance over for another 4-year term. This way, each CD will be depleted in a rotating fashion until they start hitting the minimum CD balances, at which point (assuming I'm still alive then) I will begin to re-consolidate them into three, then two, and then finally one single CD. The May maturity date will also be handy because that's also the month when both my auto and homeowners policies renew, and so the RMD will be on hand to help with those premiums if necessary.
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Old 11-26-2018, 11:22 AM
Location: Northern panhandle WV
3,007 posts, read 2,175,019 times
Reputation: 6696
As for contributions, you can continue to contribute to a ROTH IRA after 70.5 as long as you have earned income for at least that amount.
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