When can one no longer invest in IRAs?
After age 70.5 you have to take required minimum distributions (RMD) from a traditional IRA. Not sure if anything changed for 2009, but for 2008 annual contribution limit was $5000 ($6000 if age 50 or older). That is a grand total for any types of IRA’s, but there are some special situations that might allow more (see IRS Publication 590). After age 70.5 you can still convert money from IRA (or former employer’s 401k) to a Roth IRA, but not the RMD, just an amount above that. My mom is still converting IRA to Roth IRA and she is 79 years old. You pay tax on the amount converted to the Roth IRA, but no more tax, a Roth IRA has no required minimum distributions, and there are estate advantages.
It really depends on your IRA – Roth or Traditional. Check this site out, they give a plethora of info on retirement: http://alpha-investing.com/id12.
