Yes, you can contribute to an IRA after you retire, but you'll need to have a certain amount of “earned income” to do so. Earnings from work come in the form of salaries, tips, or bonuses, so you'll likely need to have at least some type of part-time work. An IRA (and its corollary, the Roth IRA) is a tax-advantaged form of retirement account that allows you to save money during your working years so that you can withdraw it during retirement. There's no age limit for contributing to an IRA, meaning you can do so at any time in your life.
However, you can only contribute earned income to this account, not investment income. So, even if you're technically retired, you must work in some way to make additional contributions to the IRA. A financial advisor may be able to help you determine how to manage your IRA. SmartAsset's free advisor search tool can help you find advisors who serve your area.
If you fund your IRA after you retire, you should consider the maximum contribution limits. However, you may not be able to deduct all of your traditional IRA contributions if you or your spouse participate in another retirement plan at work. 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. There are also other considerations, such as whether you will stop working completely or if you intend to supplement your retirement income with a part-time or independent job.
However, you must be working while you're retired; you can only make IRA contributions with the income you earned from this job; and you can't contribute to your IRA or Roth IRA more than you earned in that tax year. Any money that contributes to an IRA is not counted as taxable income for federal income tax purposes. For example, you can participate in an employer-sponsored 401 (k) plan, you can fund your own individual retirement account (IRA), or both. There are also contribution limits that you must comply with to avoid being charged a penalty by the IRS.
After all, it all depends on your personal situation, so it's up to you to decide if contributing to your account after retirement is right for you. The deduction may be limited if you or your spouse are covered by a retirement plan at work and your income exceeds certain levels. Each spouse can make a contribution up to the current limit; however, the total of your combined contributions cannot exceed the taxable compensation stated on your joint return. Contributions to a Roth IRA are not deductible, but you don't pay taxes when you withdraw your contributions at any age.
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.