Can You Put Money Into a Roth After You Retire?

After you retire, can you still put money into a Roth IRA? Here are 3 ways you can!

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Mike Bernard, CFP® offers advisory services through KFG Wealth Management, LLC dba Korhorn Financial Group. This information is for general financial education and is not intended to provide specific investment advice or recommendations. All investing and investment strategies involve risk, including the potential loss of principal. Asset allocation & diversification do not ensure a profit or prevent a loss in a declining market. Past performance is not a guarantee of future results.

[Patriciabanks]

Investing in Roth IRA can be a good choice since they are funded with after tax dollars, your contributions can grow tax-free over time. When you withdraw money from your Roth IRA in retirement, you won’t have to pay tax on it, which will help you keep more of your hard-earned money. I retired with 5 million dollars

[rodeleon]

i retired in april this year just for the weather lol. i wanted to stand outside in the warm sun on a monday morning drinking a cup of coffee to really appreciate it.

[NeilCarlsonNM]

If you do a Roth conversion and pay the taxes out of a non-retirement account (savings, etc.) instead of having them withheld from the conversion amount, the amount of tax paid effectively functions as a new contribution to the Roth account. For example, suppose you're in the 22% tax bracket and have $1000 in an IRA that you want to convert. Only $780 of that amount is really yours; the IRS claims $220 in taxes. If the taxes are withheld from the conversion, you will wind up with an additional $780 in the Roth account, but that entire $780 is yours; you've moved your $780 share in the IRA to the Roth, and your share in the IRA+Roth is unchanged. However if you pay the $220 tax out of savings, then you wind up with an additional $1000 in your Roth -- all yours -- and your share of the IRA+Roth is increased by $220, which is effectively a contribution made from savings.

[hersdera]

Great video. We are all seeking for financial independence and a better way of life. This is not difficult to achieve with savvy investing, a frugal lifestyle, and cautious budgeting. I'm glad I learned early on to work hard for financial independence. As Warren Buffet said, he has seen this happen many times in his life. Not an investor, My husband and i never earned more than a middle class salary. We plan to get retired at 58 with a stock portfolio worth $1.7M. We have never sold so much as one share of stock.

[Chiroman]

Here's One for you... I'm 73 YO, retired, and I receive a W-2 form my former Employer representing "income" (Imputed) for about $6, 000 as the Amount the Employer pays annually for the Group Life Insurance Policy that is extended to me during my working years and beyond. Can I open a Roth IRA and deposit Up to The $6, 000 into this new Roth IRA. My CPA says Yes, in fact thought it was good idea. My Financial Planner felt that the "income" was inputted not earned. The CPA said all Income is Inputted and thus with a W-2 it is Earned Income. Curious - What is your Opinion? I realize and can be a negative is that the Money would have to sit in the Roth for 5 years before I could withdraw it without penalties or taxes. I would probably invest those funds into a Bank CD and/or some stocks or bonds(T Bills).

[ron]

8:22 This is exactly what we are planning to do as my wife retires early 2025 and then we will use that money to offset what is goin into ROTH accounts(s).

[ron]

5:06 What about payout from a 457b or 403b? These are deferred compensation and are not taxed until they are drawn upon (ROTH versions excepted).

[tulsatom]

RMDs and Spousal IRAs:
- if you reach the age when you have to take RMDs, but your Spouse is still working . . .
[ ] Can you put your RMD into a Spousal ROTH IRA ?

[wilsonjudson]

I'm not kidding when I say that the market crash and high inflation have me really stressed out and
worried about retirement. I've been in the red for a while now and although people say these crisis has it
perks, I'm losing my mind but I get it Investing is a long-term game, so focus on the long run.

[geoffreyshaffer]

I knew that was a Michigander accent before you even said Midwest! Great info. Thank you for this. (Go Buckeyes!)

[magicbus]

This isn't any news. Sure we already know we can contribute in the last year.

[sonnysamu]

If you do a 20k conversion of a income fund and you have the income fund opened in your traditional roth already does the converted amount go into to roth income fund that is already opened?

[rickdunn]

Questions: 1. Spouse A earns $1000, is a Spousal Roth Contribution limited for Spouse B to $1000 or A+B can't exceed $1000 ?

[christineesser]

Why did you limit it to W2 income? Wouldn't 1099 income work as well?

[stuartstevenson]

I just added this comment to your 1 year old video about "How to avoid paying taxes on your Social Security" I copied it here because I didn't know if you would see it on the old video.
Guys,

The Supreme Court has determined the Social Security System has NO contractual obligation to pay retirees anything. The Social Security Act of 1935 makes NO reference to a SS Fund. The act creates a SS account to keep track of the money paid in. Section 8 explains the money collected is to be deposited into the US Treasury General Fund as tax receipts.
The last two phrases of the preamble (the very first sentence) of the act tell you EXACTLY the purpose of the SS Act. And I quote "; to raise revenue: and for other purposes. All the flowery platitudes about providing for some of the populace is just so much smoke screen. 'And for other purposes' leaves the door WIDE OPEN for congress to spend the money however the see fit.
Don't believe me? The act is online for you to read.
All the blathering about Congress spending the fund is just a heaping, stinking pile of BS, (a distraction!).

[jdgolf]

I retired in June, which means I am still eligable for a prorated performance bonus payable next year. Is that considered earned income, which would allow for a roth contribution?

[swatigee]

What about income from interest? Is that earned income?

[beb]

Is the limit on Spousal Roth IRA reduced if money is saved in a 401K as pre-tax? So if husband earns 15K a year and contributes 7K to a pre-tax 401K to show 8K taxable, is the Roth IRA amount limited to 4k each or can then each do the full 7.5K assuming both are at least 50?

[prandn]

If you have Roth within your 401k which has met the 5 year rule & transfer to a new Roth 401 IRA account outside the 401k does the 5 year rule start all over again? Thank you.