Can You Contribute to an IRA After Retirement?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Understanding IRA Contributions Post-Retirement

Eligibility for IRA Contributions After Retirement

You can contribute to an Individual Retirement Account (IRA) after retirement, subject to certain conditions. The key requirement is having earned income, such as wages or self-employment income.

Considerations for IRA Contributions in Retirement

  • Tax Implications: Contributions to a traditional IRA may increase your taxable income.
  • Nonqualified Retirement Accounts: Alternatives like fixed or fixed index annuities might be more beneficial post-retirement, as they typically tax only the interest portion.

Alternatives to IRA Contributions

Fixed Annuities

Fixed Index Annuities

  • Definition: Similar to fixed annuities but with returns linked to a market index.
  • Tax Advantage: Only the interest earned is subject to tax upon withdrawal.

IRA vs. Nonqualified Retirement Accounts

FeatureTraditional IRAFixed AnnuityFixed Index Annuity
Tax on ContributionsYes (deferred)No (after-tax)No (after-tax)
Tax on WithdrawalsEntire amountOnly interestOnly interest
Income RequirementsMust have earned incomeNot requiredNot required
Investment RiskVariesLowLow to moderate


While contributing to an IRA after retirement is possible, it’s important to weigh the tax implications. Nonqualified retirement accounts like fixed or fixed index annuities, which tax only the interest, can be a more tax-efficient choice for retirees. Understanding these options will help achieve financial goals in retirement.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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