19 Jan Can I put money into an IRA while drawing Social Security?

Q. Can I put money into an IRA while drawing Social Security?  
— Investor, maybe

A. Saving for retirement is a great accomplishment at any age.

And an IRA is a great tax-advantaged way to put money away for the future.

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.

You must however, have earned income of at least the amount you contribute, she said.

D’Agostini said Social Security is not considered earned income. Neither is income from pensions, annuities or investment earnings, she said.

“For 2023, the annual contribution limits are $6,500, or for individuals aged 50 and over, $7,500,” she said. “These amounts will now be indexed with inflation in subsequent years as per the Secure 2.0 law recently enacted.”

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This story was originally published on Jan. 19, 2023.

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