T-IRA Contribution - eligiblity | Ed Slott and Company, LLC

T-IRA Contribution - eligiblity

investor, DOB 7/2/1945, made a traditional IRA contribution in 2016 for the 2015 tax year
custodian rejected contribution - saying they were ineligible due to age -

question
I am of the feeling the individual would be eligible to fund a traditional IRA for the 2015 tax year - 7/2/2015 was their 70th bithday - they didnt attain age 70.5 until 1/2/2016. It seems the custodian reject the contribution in error.

Any guidance is appreciated.

Thank you

You are correct. Refer custodian to the "Age 70.5 rule in Pub 590 A. The applicable age is the age attained "for the year" of the contribution, not "in the year". Custodian's error so they should accept the contribution now.

 

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