Surprise: 69 1/2 is a major year in the 'life planning calendar.'
In 2015, we are looking at planning ideas for different life stages. This month: The year the IRA owner reaches age 69 1/2.
Wait a minute, who cares about turning age 69 1/2? Everybody knows the big year is when you reach age 70 1/2, not 69 1/2, right?
Wrong. Age 69 1/2 is a big deal, a major year in the "life planning calendar."
In the year you reach age 69 1/2:
> If you're still working, this is your final chance to make a traditional IRA regular contribution.
> And it's your final year to roll your traditional IRA into your workplace plan (if you are still working) to totally avoid taking any required minimum distributions from the IRA.
> Now's the time to consider other ways to reduce future RMDs too, such as Roth conversions and purchase of a QLAC.
Final Traditional IRA Contribution
If you are age 70 1/2 or older at the end of a calendar year, you are not allowed to contribute to a traditional IRA for that year. So the last year you can make a "regular" contribution to a traditional IRA is the year in which you turn 69 1/2.