IRA Eligibility Requirements
If the taxpayer or spouse contributed to a traditional IRA during the tax year, determine if the taxpayer (and spouse, if applicable) met these eligibility requirements for making an IRA contribution:
- Types of IRAs: Verify the types of IRAs to which the taxpayer and spouse contributed. Only contributions to traditional IRAs are deductible.
- Age limit: Taxpayers can contribute to a traditional IRA only if they are less than 70½ years of age at the end of the tax year. Check the taxpayer's birth date (and spouse's if applicable) indicated on the intake and interview sheet. To meet the age requirement for 2011, a taxpayer must have been born on, or after, July 1, 1941.
- Compensation: Individuals must have taxable compensation (wages, self-employment income, commissions, taxable alimony, taxable scholarships or fellowships).
- Time limits: Contributions must be made by the due date for filing the return, not including extensions. Verify with the taxpayer and spouse that the contribution(s) were made (or will be made) by the due date of the return.
Be sure the taxpayer knows that, if a contribution is reported on the 2011 return but is not made by the deadline, the taxpayer must file an amended return.