Retirement Planning/IRA Contributions



Is it possible or legal to make deposits into an IRA during retirement?

For example, if someone has money in a bank account, can he use this earned-income money to fund his IRA since the money in the account was earned will he was working?

I thank you for your reply.

ANSWER: Dear Kenneth,

Deposits into IRAs must be made in the calendar year for which the funds were earned. So, no!

Beyond answering your question, I wish to make this comment: Traditional IRAs and deposits to 401(k)s that are not matched by one's employer are likely to result in no real tax-savings. For many retirees, this actually results in paying more in taxes than they thought they were saving by having deferred income.

For a more definitive explanation, I would be happy to send you a copy of my report, 'Life Insurance and Retirement - the Unvarnished Truth.' Simply e-mail me at

Willard R. Brumbaugh, LUTCF
CA License 0374776
#888# 792-2379

---------- FOLLOW-UP ----------


I want to thank you for the reply.

Would it be more accurate to indicate that IRA contributions must be made in the calendar year the funds were earned or will be earned?

IRA contributions can be made as early as January for that year.  In this situation the money has not been earned yet.

I thank you for your follow-up reply.

The problem with making contributions before the money has been earned is the possibility that one's income may be interrupted.

To make my answer clearer. For 2013 contributions, you would have till April 15th, 2014 to make contributions that would be declared on your 2013 year tax filing. So, technically, your contributions for any particular year, can be made outside that calendar year, so long as it is before the tax filing date.

Willard R. Brumbaugh, LUTCF

Retirement Planning

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Willard R. Brumbaugh, LUTCF


I have answered many questions regarding 401ks, IRAs and annuities as well as life insurance. I have been counselling against most Qualified Plans since 1994.


Ranked in the top 5 in retirement catagories at most of its last 2 1/2 years. Organizations I belong to: National Association of Insurance and Financial Advisors-California
Inland Empire Estate Planning Council

Life Underwriters Training Council Fellow

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