Traditional IRA contributions made after an individual reaches the age of 59 1/2 are treated as excess contributions and are subject to a nondeductible 6% excise penalty tax.

Question

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Contributions to a traditional IRA made after age 59 1/2 are not subject to a penalty tax, and in fact, can be withdrawn penalty-free. However, they may still be subject to income taxes depending on whether they were made with pre-tax or post-tax dollars.

Traditional IRA Contributions Made After an Individual Reaches the Age