Roth IRA with 401k and pension

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LH
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Joined: Wed Mar 14, 2007 2:54 am

Roth IRA with 401k and pension

Post by LH » Fri May 10, 2013 11:55 am

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

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archbish99
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Joined: Fri Jun 10, 2011 6:02 pm

Re: Roth IRA with 401k and pension

Post by archbish99 » Sat May 11, 2013 11:36 am

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.

retiredjg
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Joined: Thu Jan 10, 2008 12:56 pm

Re: Roth IRA with 401k and pension

Post by retiredjg » Sat May 11, 2013 11:52 am

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.

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LH
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Joined: Wed Mar 14, 2007 2:54 am

Re: Roth IRA with 401k and pension

Post by LH » Sat May 11, 2013 10:31 pm

Thanks

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