المساهمة في الجيش الجمهوري الايرلندي بعد التقاعد: هل من الممكن؟
المساهمة في الجيش الجمهوري الايرلندي بعد التقاعد: هل من الممكن؟
اعلانات

Should You Continue Funding Your Pension After Retirement? The idea may seem counterintuitive, but for retirees who are still working part-time, setting up an IRA can ensure they have enough money to enjoy retirement well into the future. Here’s what you should know about contributing to an IRA when you retire.

Can you contribute to your IRA after retirement?

Yes, you can contribute to an IRA in retirement, but you must have some “income” to do so. Earned income comes in the form of salary, wages, tips or bonuses, so you’ll probably need at least some kind of part-time job. Income from dividends, interest, or social security, etc., does not count as work income.

If you are retired and your spouse has an income, he or she can contribute to his or her own IRA and can also make so-called spousal contributions to your IRA.

Contributions to traditional IRAs were banned for more than 70 ½ years prior to the passage of the SECURE Act in 2019, but this is no longer an issue. Now, no matter your age, you can contribute to a traditional or Roth IRA.

اعلانات

“Having something for the future is rarely a bad thing if it doesn’t hurt your current lifestyle,” says Ai Ai, a board-certified financial planner in Cocoa, FL and author of “Wealth Choices: Choosing Your Way.” Lynn Davis said. A richer future. ”

IRA Contribution Limits After Retirement

The IRA contribution limit is the same at retirement as for the rest of your life. For those under 50, you can contribute up to 100% of your income, or $6,000 (2022), whichever is lower. Those 50 and older can contribute an additional $1,000 as a catch-up contribution, for a total of $7,000.

Let’s say you make $3,000 in a year working part-time. Your IRA contributions are capped at $3,000 because that’s your income. The limits are the same whether you contribute to a Traditional IRA or a Roth IRA.

اعلانات

ميزة

Savings Growth – If you contribute to an IRA in retirement, you’ll get savings growth and can help pay for things like end-of-life care or other health care costs.
Tax benefits – Contributing to a traditional IRA can give you an immediate tax cut, which can help lower your current tax bill. You can also benefit from tax-advantaged growth on investments you hold in an IRA. Roth IRA contributions aren’t immediately tax deductible, but withdrawals are ultimately tax-free as long as you hold the account for at least 5 years.
Investment Flexibility – Compared to typical corporate pension plans such as a 401(k), you have more flexibility in the types of investments you can hold in an IRA.

عيب

LESS TO LIVE – If you retire, you are likely to live on a steady income. If you contribute to an IRA, you will have less money to live on today.
Potential Risks – Types of investments typically held in IRAs, such as B. Individual stocks or equity mutual funds may not be suitable for those who are already retired. Stocks are volatile, so don’t invest your IRA contributions in the stock market if you think you’ll need the money for the next 5 years to make ends meet.
Less liquidity – It may also be harder to quickly access funds held in an IRA if you need the funds immediately. Before transferring funds, you must sell the investment and wait for the transaction to settle. You’d be better off putting your donation into a money market fund that you can quickly access.

اعلانات

It doesn’t make sense to invest in an IRA in retirement if you can’t afford it. However, if you can afford it, there are benefits to putting more money in a tax-deferred account, especially if you have a long life.

“It’s better to save more for retirement so you have more savings in retirement,” said Ken Hevert, head of digital products and customer experience at Fidelity Investments.

Ross and the Traditional IRA

Whether you contribute with a Roth or a traditional IRA depends on your tax situation. Hevert prefers Roth because there are no required minimum distributions or RMDs, so funds can continue to grow through retirement and be used or left to estate heirs after retirement.

If you contribute to a traditional IRA on a pre-tax basis, you will receive the benefit of a pre-tax deduction. But some advisors don’t see the point of this strategy because the benefits are temporary.

“If you’re trying to save a few dollars in taxes and you’re still working, contributing to a traditional IRA can be beneficial,” says Richard E. Reyes, a board-certified financial planner with Wealth & Business Planning Group. Maitland, Florida. “But I don’t really find that attractive because when you start taking distributions, it’s going to be taxed.”

If you have a SIMPLE IRA or SEP IRA but retire from that job, you can still open an IRA through an investment firm like Vanguard or Fidelity. Read Bankrate’s broker reviews to find the right broker for you.

لذا تعلم المزيد:

اعلانات