Retirement Accounts: Keep Contributing After Age 70 1/2?
It may sound strange, but this technique can work well in some circumstances.
Assume you have reached age 70 1/2 and are starting to receive required minimum distributions (RMDs) from an IRA or other retirement plans. Even though you are required to take money out, you may wonder, "Can I still reduce current income taxes by contributing at the same time?"
Although it seems strange to take money (the RMD) out of the plan with one hand and put funds back in with the other hand, this technique does work well for some people.