3603. Who may establish an IRA?Nuco Employeercline202014-06-03T20:27:00Z2014-06-03T20:27:00Z23351911Albany Law School154224214Site Map/Individual Retirement Plans/Roth IRA/EligibilitySite Map/Individual Retirement Plans/Traditional IRA/Eligibilityindividual retirement account annuity2005-01-25T00:00:00ZTaxFactsDefaultArticle114700217-00-tf1.xml218.00;#1810;#1819;#0x010100C568DB52D9D0A14D9B2FDCC96666E9F2007948130EC3DB064584E219954237AF3900242457EFB8B24247815D688C526CD44D009C4E67E972694125ABDA91AC61F5E51FTax Facts 1What individuals may establish an IRA?116600.000000000TaxFactsDefaultArticle2010-01-19T08:09:46ZSBMEDIA\moss-admin4111dbb3-6119-41fc-9d9c-28768801cec4|f4a99f14-70d1-4322-89d4-6abb9d2ff0f8|7d42f7c0-b873-45ba-a564-24762bdf78913603. Who may establish an IRA?Virtually any individual who wishes to do so may establish a traditional individual retirement plan. To deduct contributions to such a plan once it is established and avoid tax penalties for excess contributions, an individual must have compensation (either earned income of an employee or self-employed person, or alimony), and must not have attained age 70½ during the taxable year for which the contribution is made.IRC Sec. 219. If an individual is an “active participant” (Q 3611), the deduction may be limited (Q 3606). Any individual who can make a rollover contribution (Q 3854) may establish an individual retirement plan (or more than one plan) to receive it (Q 3857 to Q 3868).Special Ruling 9-28-76. To establish a Roth individual retirement plan, an individual (1) must have compensation (either earned income of an employee or self-employed person, or alimony), and (2) must not have adjusted gross income (in 2014) (a) of $191,000 or above in the case of a taxpayer filing a joint return, (b) of $129,000 or above in the case of a taxpayer filing a single or head-of-household return, or (c) of $10,000 or above in the case of a married individual filing separately (Appendix E).IRS Pub. 590. An individual who satisfies these requirements may establish and contribute to a Roth IRA even if he or she has attained age 70½ (Q 3607).IRC Secs. 219, 408A; IR-2011-103, IR-2013-86. As to what constitutes “compensation,” see Q 3610. An estate may not make a contribution on behalf of the decedent.Let. Rul. 8439066.