Contributions can be made to a SEP-IRA after age 70 1/2, and distributions are subject to the same rules that govern traditional deductible IRA distributions. It may seem strange, but if you continue to work after age 70 1/2, youâll have to take taxable withdrawals in the same year you make deductible contributions.n 2008 you can contribute 100 percent of your earnings up to a maximum of $5,000 to an IRA ($6,000 if youâll turn age 50 by Dec. 31). If youâre married, your nonworking spouse can also contribute the same amount to an IRA as long as total IRA contributions that year donât exceed the amount of your earned income.