Roth IRA with 401k and pension

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LH
Posts: 5490
Joined: Wed Mar 14, 2007 2:54 am

Roth IRA with 401k and pension

Post by LH »

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 »

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.
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retiredjg
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Re: Roth IRA with 401k and pension

Post by retiredjg »

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 »

Thanks
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