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. Putting your money in an IRA when you've retired may mean keeping it for a certain period of time.
So, even if you're technically retired, you must work in some way to make additional contributions to the IRA. Regardless of your age or employment status, you can never exceed the annual contribution limits set by the IRS for both types of IRAs. 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. 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.
Before the passage of the SECURE Act, people couldn't contribute to traditional IRAs after age 70 and a half. 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. When comparing these two options, you'll want to understand the implications and rules of traditional and Roth IRA contributions. If your modified AGI is equal to or less than the lower phase-out amount, you can deduct your total IRA contribution.
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. You can make contributions to your Roth IRA as long as you don't exceed the maximum annual contribution limits. If your income is too high to deduct contributions to a traditional IRA, you may qualify for a Roth IRA. If you're covered by a business plan, a second test decides how much of your IRA contribution you can deduct.
When calculating your contribution limit, don't subtract employer contributions under an SEP plan or SIMPLE IRA.