Septuagenarian rapper “Ineeda P” entertains at local senior centers and assisted living facilities. He is paid as an employee by an entertainment booking agency and receives a Form W-2.
Despite being 74 Ineeda can contribute up to $7,500 to an IRA. Thanks to the SECURE Act beginning with tax year 2020 there is no age limit on making regular contributions to traditional or Roth IRAs. The only requirement is that you have earned income – such wages or net earnings from self-employment.
Ineeda is confident he will earn enough to make the maximum contribution each year. He makes his contribution on the first business day of the year. So, he made his 2023 contribution of $7,500 on January 2, 2023.
Although Ineeda can, and does, continue to make annual contributions to his IRA, because he was born before July 1 of 1949, he must take a “Required Minimum Distribution” (RMD) from his traditional IRA account each year.
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