You can continue to contribute to a roth ira after you retire, as long as you have some earned income. Contributions to the Roth IRA are not tax-deductible in advance. If you fund your IRA after you retire, you should consider the maximum contribution limits. But what if you've already retired and no longer have any compensation? There's still a way you can contribute.
You can make contributions to your Roth IRA as long as you don't exceed the maximum annual contribution limits. Regardless of your age or employment status, you can never exceed the annual contribution limits set by the IRS for both types of IRAs. In addition, your contribution limit depends on your tax-filing status and your modified adjusted gross income (MAGI). Hevert is in favor of Roth because there is no minimum distribution (RMD) required, so funds can continue to grow during retirement and can be used later in retirement or left to the heirs of an estate.
If your spouse continues to work and has earned income, you can set up and fund a Roth IRA for you, even if you don't work actively. This means that the previous contribution age limit of 70 and a half years no longer applies; however, traditional IRA holders should start receiving the required minimum distributions (RMD) at age 72.No matter how old you are, you can continue to contribute to your Roth IRA as long as you earn income, whether you receive a salary as a staff employee or 1099 income from contract or self-employment. The main benefit of contributing to your IRA during retirement is that you'll be accumulating your savings. It's possible to continue contributing to a traditional IRA even if you're officially retired, but you're still working or providing services of whatever type you're paid for and you can document or file on your tax return.
Whether you use a Roth or a traditional IRA for those contributions depends on your tax situation. You can only bring earned income to the account, which means you can't discount distributions from other retirement accounts, dividends, or interest income to the account. A Roth IRA is an IRA that, except as explained below, is subject to the rules that apply to a traditional IRA. Check your income eligibility each year to determine if you can make direct contributions to a Roth IRA.
If you deposit funds into a Roth IRA after you retire, you can allow your savings to grow tax-free because it brings you after-tax money.