Can you contribute to your IRA if you are on Social Security?

Yes, you can contribute to an IRA while receiving Social Security, but only if you have earned income (from a job, self-employment) at least equal to your contribution; Social Security benefits, pensions, or investments don't count as earned income for IRA contributions, though you can contribute up to the annual limits ($7,000 in 2024, $8,000 if 50+) or your earned income, whichever is lower, and continue funding your retirement.


What is one of the biggest mistakes people make regarding Social Security?

Claiming Benefits Too Early

One of the biggest mistakes people make is claiming Social Security benefits as soon as they're eligible, which is at age 62. While getting money sooner can be tempting, claiming early has a significant downside: your monthly benefit will be reduced.

Can I contribute to an IRA if I am retired and not working?

To contribute to a Roth IRA, you must have earned income from work or self-employment during the tax year. Social Security, pensions, investment income, and gift annuities do not qualify as earned income. Without earned income, Roth IRA contributions are generally not allowed, regardless of age or retirement status.


Can you put money in an IRA when you are retired?

The traditional retirement age in the U.S. is typically considered 65 (67 for younger generations), but many people choose to retire before or after this age. Knowing your retirement readiness is a personal decision that hinges on both financial and non-financial factors.

Can I contribute to an IRA if I am receiving a pension?

Yes, you can contribute to a Traditional or Roth IRA even with a pension, but your pension income doesn't count as "earned income" for contributing, so you need other earned income (like from a job or self-employment) to qualify; if your income is high, your deduction for a Traditional IRA might be limited or eliminated, but you can always make non-deductible contributions or fund a Roth IRA if you meet income limits. 


Can You Contribute to an IRA if You Are on SSDI?



Can I contribute to an IRA if I collect Social Security?

Yes, you certainly can contribute to an IRA, or if eligible, to a Roth IRA even if you are collecting Social Security benefits, said Jody D'Agostini, a certified financial planner with Equitable Advisors/The Falcon Financial Group in Morristown.

At what income can you no longer contribute to an IRA?

IRA income phase-outs depend on whether it's a Traditional or Roth IRA and your filing status, with Roth IRA contributions phasing out at specific income levels (e.g., 2026 Singles: $153k-$168k MAGI) while Traditional IRA deductibility phases out if you or your spouse have a workplace plan (e.g., 2026 Married Jointly with Workplace Plan: $129k-$149k MAGI), but anyone can contribute to a Traditional IRA, though it might not be tax-deductible.
 

How much do you have to make to get $3,000 a month in Social Security?

To get around $3,000/month in Social Security, you generally need a high earning history, around $100,000-$108,000+ annually over your top 35 years, but waiting to claim until age 70 maximizes this amount, potentially reaching it with lower yearly earnings, say under $70k if you wait long enough, as benefits are based on your highest indexed earnings over 35 years. The exact amount depends heavily on your specific earnings history and the age you start collecting benefits. 


Can I put money in an IRA if I don't have income?

No, you generally cannot contribute to an IRA (Traditional or Roth) without having earned income, but a Spousal IRA allows a non-working spouse to contribute using the working spouse's income, and some non-traditional income sources (like self-employment, stock options, or taxable scholarships) qualify for both types of IRAs, provided you meet income limits. You must have taxable compensation like wages, salaries, tips, or net self-employment earnings, but not passive income (dividends, interest). 

What are the biggest mistakes people make when retiring?

5 retirement mistakes to avoid
  • Lacking a life plan. Retirement is a difficult journey to travel without a map. ...
  • Overspending. ...
  • Claiming Social Security too early. ...
  • Being overly conservative with investments. ...
  • Retiring too early.


Can a retired person put money into an IRA?

Yes, you can contribute to an IRA after retirement, but you must have taxable compensation (earned income) like wages or self-employment earnings, not just investment income (dividends, interest). Thanks to the SECURE Act, there's no age limit for contributing to Traditional or Roth IRAs if you have earned income, though Roth IRAs have income restrictions. Spousal IRAs allow contributions even without personal earned income if your spouse earns income. 


At what age are you no longer allowed to contribute to a Roth IRA?

Roth IRA income limits

For 2026, single filers must have a modified adjusted gross income (MAGI) of less than $153,000, and joint filers less than $242,000, to make a full contribution. There are no age requirements for contributing to a Roth IRA, so individuals of any age with qualifying income can contribute.

Do seniors pay taxes on IRA withdrawals?

Key takeaways

Withdrawals taken before age 59½ are generally subject to taxes and a penalty. After age 59½, you can withdraw funds from both traditional and Roth IRAs without a penalty, though taxes apply to some withdrawals.

What is the biggest retirement regret among seniors?

Not Saving Enough

If there's one regret that rises above all others, it's this: not saving enough. In fact, a study from the Transamerica Center for Retirement Studies shows that 78% of retirees wish they had saved more.


What is the $1000 a month rule for retirement?

The $1,000 a month retirement rule is a simple guideline stating you need about $240,000 saved for every $1,000 of monthly income you want from your investments in retirement, based on a 5% annual withdrawal rate ($240k x 0.05 / 12 = $1k/month). It's a motivational tool to estimate savings goals (e.g., $3,000/month needs $720k), but it's one-dimensional, doesn't account for inflation, taxes, or other income like Social Security, and assumes steady 5% returns, making a personalized plan essential. 

What are the three ways you can lose your Social Security benefits?

You can lose Social Security benefits by working while collecting early, leading to earnings limits; incarceration, which suspends payments; or through garnishment for federal debts like taxes, student loans, or child support, along with other factors like remarriage or changes in disability status. 

At what age does a Roth IRA not make sense?

A Roth IRA is generally never too late to start contributing to, but the math changes as you age, especially for conversions; it might be less "worth it" after 60 if the upfront tax cost outweighs the limited time for tax-free growth, or if a conversion spikes your income, increasing Medicare premiums (age 63+), though benefits like no RMDs and tax-free inheritance still exist for older investors. The "not worth it" point depends on your tax bracket, expected retirement income, and how long you'll live to enjoy tax-free growth vs. paying taxes now. 


Can you contribute to an IRA if you are retired and not working?

Key Takeaways. All retirees can contribute to traditional IRAs if they earn income, according to the SECURE Act of 2019. Retirees can continue to contribute earned funds to a Roth IRA indefinitely. Contributions cannot be made with unearned income, including money from capital gains, dividends, or investment interest.

Do I have to report my IRA on my tax return?

If you have a 401(k) or individual retirement account (IRA), you might be wondering what you are required to report on your taxes. Luckily, you typically don't need to report your 401(k) contributions, 401(k) or IRA balances, or even investment returns to the Internal Revenue Service (IRS).

How much money can you make a month without losing your Social Security?

You can make unlimited income without affecting Social Security once you reach Full Retirement Age (FRA), but if you're collecting before FRA, earning too much reduces benefits: in 2026, the limit is about $24,480/month (or $2,040/month) before benefits are cut $1 for every $2 over the limit, with a higher limit ($65,160/year) until the month you hit FRA. 


What are the changes for Social Security in 2025?

The COLA was 2.5 percent in 2025. Nearly 71 million Social Security beneficiaries will see a 2.8 percent COLA beginning in January 2026. Increased payments to nearly 7.5 million people receiving SSI will begin on December 31, 2025. (Note: Some people receive both Social Security benefits and SSI).

How does an IRA affect Social Security benefits?

"A Roth IRA or Roth 401(k) can help you save on taxes in retirement. Not only are withdrawals potentially tax-free,2 they won't impact the taxation of your Social Security benefit. This is an important aspect of a Roth account that most people are not aware of.”

Can I contribute to an IRA without any earned income?

No, you generally cannot contribute to an IRA (Traditional or Roth) without having earned income, but a Spousal IRA allows a non-working spouse to contribute using the working spouse's income, and some non-traditional income sources (like self-employment, stock options, or taxable scholarships) qualify for both types of IRAs, provided you meet income limits. You must have taxable compensation like wages, salaries, tips, or net self-employment earnings, but not passive income (dividends, interest). 


What are the downsides of a Roth IRA?

The main cons of a Roth IRA are no upfront tax deduction, meaning you pay taxes on contributions now, plus income limits restrict high earners, and there's a 5-year rule for tax-free earnings withdrawals, requiring funds to stay in the account for five years after opening, with penalties for early withdrawal of earnings. You also miss out on potential employer matching (unlike Roth 401(k)s) and have lower contribution limits than employer plans.