Yes, you can contribute to an IRA after you retire (with caveats). If your income exceeds these limits, you can still contribute money to a traditional pre-tax IRA. You can even invest in Gold in my pre-tax IRA if you wish. However, the contribution you make to your pre tax IRAs will not be tax-deductible.
For contributions to a Roth IRA, make sure you can contribute to a Roth IRA right from the start. Traditional IRAs don't have this rule, as do other types of IRAs, such as SEP IRAs and SIMPLE IRAs, which are often used by self-employed individuals and small business owners. Remember that you are also not subject to income limits when you make contributions to a SIMPLE IRA or an SEP IRA; options that are only available if your employer offers them, if you are a small business owner, or if you are self-employed and can open one on your own. But keep in mind that what you get from Social Security doesn't qualify as earned income and therefore can't be contributed to an IRA. Many, but not all, Americans can invest in a traditional IRA with pre-tax funds and claim a deduction for their contribution in the year in which it is made.
Ultimately, you'll need to decide if contributing to an IRA during retirement is a smart decision for you. Keep in mind that you can contribute to an IRA during retirement even if you've started collecting Social Security benefits. The ability to make non-deductible contributions regardless of income level makes traditional IRAs a valuable retirement savings account that can be converted into a clandestine Roth IRA. Since there are many factors involved in these decisions, it may be worth talking to a local financial advisor before adding money to an IRA in retirement.
If you are retired and your spouse has earned income, he or she can contribute to their own IRA and also make what is called a spousal contribution to your IRA. First, make sure that you actually have the taxable compensation required to make the traditional IRA or Roth IRA contributions you're considering making. While it may seem like a good idea to continue saving money during retirement, it's wise to first consider the pros and cons before adding money to an IRA after you retire. In the coming years, when you're in a higher tax bracket, you'll be able to withdraw money that contributes to the tax-free Roth IRA.
In the recent past, you couldn't contribute to a traditional IRA once you reached the year you turned 70 and a half years old. Contributing to an IRA or Roth IRA during retirement has benefits, depending on your particular situation. If you had a SIMPLE IRA or an SEP IRA but have retired from that job, you can still open an IRA through investment firms such as Vanguard or Fidelity.
