Can a retired person contribute to a roth ira?

Roth individual retirement accounts (IRAs) are popular investment options for many investors, especially those currently at lower income tax levels. You can continue to contribute to a Roth IRA after you retire, as long as you have some earned income. One method of conversion is to take a distribution from the traditional IRA and contribute it (reinvestment) to a Roth IRA within 60 days from the date of distribution. 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.

But what's better for retirees, a Roth IRA or a traditional IRA? The potential tax-exempt withdrawals offered by Roth IRAs are an attractive advantage, but some people may benefit more from the tax-deductible contributions that traditional IRAs involve. 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. After confirming that you are eligible to make contributions to an IRA during retirement, you may need guidance on how much you can contribute or help evaluating whether a Roth or a traditional IRA is better for you. However, you can still contribute to a Roth IRA and make cumulative contributions to a Roth or traditional IRA, regardless of your age.

Leave Message

Required fields are marked *