Posthumous IRA

It was some time ago but I believe we concluded that only the individual or the individual's employer or a labor union can establish or maintain an IRA. As the individual is now deceased, the spouse (who I assume inherited the IRA) can not make a contribution for the decedent.

Agreed. Furthermore, an IRA contribution made after the end of the tax year but before the due date is deemed made ON the last day of the tax year. As he was not alive on that day, he could not have made the contribution. Your software probably allows the contribution because it doesn't ask when during the year it was made. If he had sent the check making the contribution before he died, he would then be entitled to the deduction (other requirements notwithstanding), even if the trustee processed it after death.

Of course I understand the whys and wherefores and why it works this way, since he WAS dead and couldn't have done it. But the real flies in the ointment were (1) nothing in pub

590 against it, and (2) the bank allowed it last year even though he had bought the farm earlier. Such is life.

ChEAr$, Harlan Lunsford, EA n LA

Did they know he was dead when they accepted the deposit last year? (Don't bother answering if this has already been addressed. I haven't paid close attention to this thread.)

-- Phil Marti Clarksburg, MD

Yep.

In fact bank is THE largest in the Columbus, GA area and you would have thought ....... anyway.

ChEAr$, Harlan Lunsford, EA n LA