Working after retirement brings with it the need to understand certain tax and contribution rules governing the way you can use and/or continue to contribute to the money in your qualified retirement savings accounts.
Looking first at continued contributions, in most cases, you should be able to, regardless of your age. There are no income limits to contributing to a traditional IRA, but if you or your spouse are covered by a plan at work and you meet certain income limits, your continued contribution may not be tax-deductible. For Roth IRAs you may only contribute if your income is below a certain limit. As it relates to using the funds in your qualified accounts, working in retirement doesn’t affect RMDs from IRAs, so if you have reached age 73, you will have to take them from a traditional IRA, but there are no RMD requirements for a Roth IRA.
The rules for qualified employer plans are different, so you should check with your plan administrator for both your new and prior employers. If you have any other questions, please don’t hesitate to call us; we’re always here to help.