Which of the following individuals would NOT be eligible to set up contributions to a traditional IRA?

The individual who is 72 years old and a nurse would not be eligible to set up contributions to a traditional IRA due to age limitations that were established by the SECURE Act. Prior to this law, individuals were required to stop making contributions to a traditional IRA once they reached the age of 70½. However, the SECURE Act removed the age limit for contributions, allowing individuals to continue contributing regardless of their age as long as they have earned income.

While the nurse is of an age where contribution limits are not applicable under the current regulations, it’s important to note that eligibility to contribute to a traditional IRA also requires having earned income. In this case, if the nurse does have earned income, they could still consider other factors for IRA contributions. Conversely, those under the age limit who are eligible can contribute as long as they have relevant earned income.

Understanding these age-based rules is crucial for individuals looking to maximize their retirement savings through IRAs: people under the age of 70 are generally eligible to contribute, while older individuals must meet the earned income requirement to continue contributing.