Roth IRA with 401k and pension

Have a question about your personal investments? No matter how simple or complex, you can ask it here.

Roth IRA with 401k and pension

Postby LH » Fri May 10, 2013 12:55 pm

I have a friend who has a 401K, and a government pension plan that sounds like a Defined benefit traditional pension. He will retire in 7 years.

I would assume he and his wife are eligible to contribute to a roth ira

1)either directly if they are under income limit

or

2)Via backdoor method of a nondeductible traditional ira contribution then conversion to ROTH if over limit.

just checking.

Thanks,

LH
User avatar
LH
 
Posts: 5488
Joined: Wed Mar 14, 2007 3:54 am

Re: Roth IRA with 401k and pension

Postby archbish99 » Sat May 11, 2013 12:36 pm

Yes -- anyone who has earned income is eligible to contribute to a Roth using one of those two methods. Depending on their tax bracket, it may not be advisable unless they already contribute the maximum to that 401k, though.
I'm not a financial advisor, I just play one on the Internet.
User avatar
archbish99
 
Posts: 1277
Joined: Fri Jun 10, 2011 7:02 pm

Re: Roth IRA with 401k and pension

Postby retiredjg » Sat May 11, 2013 12:52 pm

I agree. They can contribute to Roth IRA in addition to the 401k and pension. The usual warnings about other IRAs (traditional, SEP SIMPLE) being in the way of back door contributions to Roth IRA would apply.
retiredjg
 
Posts: 17329
Joined: Thu Jan 10, 2008 1:56 pm

Re: Roth IRA with 401k and pension

Postby LH » Sat May 11, 2013 11:31 pm

Thanks
User avatar
LH
 
Posts: 5488
Joined: Wed Mar 14, 2007 3:54 am


Return to Investing - Help with Personal Investments

Who is online

Users browsing this forum: Baidu [Spider], Drifting Along, john94549, johnny847, middistancerunner, Par5zn2 and 68 guests