Roth IRA contribution?

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Topic Author
Fishing2retire
Posts: 152
Joined: Mon Jun 10, 2019 2:02 pm

Roth IRA contribution?

Post by Fishing2retire »

Hi friends, quick question on Roth contributions.
Planning on retiring at 55 receiving a monthly pension check. Question is can I still keep contributing to my Roth IRA while retired and collecting a pension?
Silk McCue
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Joined: Thu Feb 25, 2016 6:11 pm

Re: Roth IRA contribution?

Post by Silk McCue »

No. You have to have earned income to fund IRAs. A pension is not earned income.

You may want to consider Roth Conversions however as the taxes paid on the conversion from taxable account sources is conceptually similar to a contribution.

I see from another post that you are 40. This certainly is a long term planning question.

Cheers
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David Jay
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Location: Michigan

Re: Roth IRA contribution?

Post by David Jay »

Silk McCue wrote: Tue Sep 10, 2019 9:14 am No. You have to have earned income to fund IRAs. A pension is not earned income.

You may want to consider Roth Conversions however as the taxes paid on the conversion from taxable account sources is conceptually similar to a contribution.

Cheers
Agree, if you have a significant tax-deferred balance you may wish to convert a bit each year while your taxable income is low before start of SS and RMDs.
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Topic Author
Fishing2retire
Posts: 152
Joined: Mon Jun 10, 2019 2:02 pm

Re: Roth IRA contribution?

Post by Fishing2retire »

Looks like I may have to consider a part time job to keep funding it at least till I’m 60.
Topic Author
Fishing2retire
Posts: 152
Joined: Mon Jun 10, 2019 2:02 pm

Re: Roth IRA contribution?

Post by Fishing2retire »

Also is there a minimum income earner to qualify to make contributions
Silk McCue
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Joined: Thu Feb 25, 2016 6:11 pm

Re: Roth IRA contribution?

Post by Silk McCue »

Fishing2retire wrote: Tue Sep 10, 2019 9:40 am Looks like I may have to consider a part time job to keep funding it at least till I’m 60.
Why? How can that possibly impact any of your retirement calculus? Please explain your thought process here.

You could simply very efficiently put the same funds into a Taxable account or perform Roth conversions. You have 15 years to figure that decision out.

What you do between now and then will have a much greater impact on your financial future.

Cheers
lakpr
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Joined: Fri Mar 18, 2011 9:59 am

Re: Roth IRA contribution?

Post by lakpr »

Fishing2retire wrote: Tue Sep 10, 2019 9:45 am Also is there a minimum income earner to qualify to make contributions
No. But if you want to max the Roth IRA, you need to have at least $6000 in earned income.
Silk McCue
Posts: 8912
Joined: Thu Feb 25, 2016 6:11 pm

Re: Roth IRA contribution?

Post by Silk McCue »

Fishing2retire wrote: Tue Sep 10, 2019 9:45 am Also is there a minimum income earner to qualify to make contributions
Earn a dollar invest a dollar. No minimum earnings. You just can’t contribute more than you or your spouse earn combined between the two of you.

Cheers
Topic Author
Fishing2retire
Posts: 152
Joined: Mon Jun 10, 2019 2:02 pm

Re: Roth IRA contribution?

Post by Fishing2retire »

Thanks for all the info everyone I greatly appreciate it.and have some time to think on what to do. I will most likely once I turn 50 do the catch up contribution to max it out even more just in case I don’t work after 55.
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