Ask Terry Questions Opening an IRA after age 71

Opening an IRA after age 71

By Terry Savage on March 10, 2015 | Financial Planning / Retirement

I am almost 66 and retired my husband almost 71 and collecting on his IRA is still working part time. Can I open an IRA in my name if he is still bringing in a paycheck, I know he can no longer put money in his.

Terry Says:  In order to open an IRA (after all, it is an INDIVIDUAL retirement account), you must have “earned income” —  that is, not from dividends, social security, or pension.   So you can’t open an IRA.  But your husband is still earning money and he could put it in a ROTH IRA ($6500 in 2015) and it would grow tax-free (his contribution will be after-tax money).  (You can’t contribute to a traditional IRA after age 70-1/2 but there is no age limit on Roth contributions.)  And he will not be required to make withdrawals, so his named beneficiary could keep the money growing tax free for the future.  That’s assuming that you have extra money in the family to set aside in a Roth.

Recent Financial Planning / Retirement Questions



a personal
finance question