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- archbish99
- Posts: 1649
- Joined: Fri Jun 10, 2011 6:02 pm
Re: Funding a 401k while Retired
Certainly. My parents are retired, but have some SE income each year -- we're transferring that amount from their taxable account to a Roth IRA each year at tax time. This is the same thing.
There's an age restriction on Traditional IRAs; no such limit on 401ks.
There's an age restriction on Traditional IRAs; no such limit on 401ks.
Last edited by archbish99 on Sun Apr 21, 2013 12:03 pm, edited 1 time in total.
I'm not a financial advisor, I just play one on the Internet.
Re: Funding a 401k while Retired
If you have income from consulting, you can put up to $17.5 (+$5k catch up) as employee's contribution in a Self Employed 401k. The amount you put in cannot be more than the net from you business.
If your consulting nets more than $17.5k (+$5k catch up if applicable) the employer (your LLC) can also add 20% of net profits to the self employed 401k, up to about $50k combined employee and employer contributions.
If your consulting nets more than $17.5k (+$5k catch up if applicable) the employer (your LLC) can also add 20% of net profits to the self employed 401k, up to about $50k combined employee and employer contributions.
Re: Funding a 401k while Retired
I agree, my Dad just retired. He was collecting RMDs (Required Minimum Distribution) from his IRA while simultaneously contributing to a 401(k).archbish99 wrote:Certainly. My parents are retired, but have some SE income each year -- we're transferring that amount from their taxable account to a Roth IRA each year at tax time. This is the same thing.
There's an age restriction on Traditional IRAs; no such limit on 401ks.
You must stop contributing to a Traditional IRA by age 70-1/2. See: Traditional IRA
- archbish99
- Posts: 1649
- Joined: Fri Jun 10, 2011 6:02 pm
Re: Funding a 401k while Retired
No change in SE taxes for the older self-employed, sadly. If they're higher earning years than the 35 factored into your SS benefit, then your benefit gets recalculated each year. You can also take your Medicare premiums (and supplement premiums) for the SE health insurance adjustment to income.
I'm not a financial advisor, I just play one on the Internet.