Roth IRA contribution?
-
- Posts: 152
- Joined: Mon Jun 10, 2019 2:02 pm
Roth IRA contribution?
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?
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?
-
- Posts: 8912
- Joined: Thu Feb 25, 2016 6:11 pm
Re: Roth IRA contribution?
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
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
Re: Roth IRA contribution?
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.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
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
-
- Posts: 152
- Joined: Mon Jun 10, 2019 2:02 pm
Re: Roth IRA contribution?
Looks like I may have to consider a part time job to keep funding it at least till I’m 60.
-
- Posts: 152
- Joined: Mon Jun 10, 2019 2:02 pm
Re: Roth IRA contribution?
Also is there a minimum income earner to qualify to make contributions
-
- Posts: 8912
- Joined: Thu Feb 25, 2016 6:11 pm
Re: Roth IRA contribution?
Why? How can that possibly impact any of your retirement calculus? Please explain your thought process here.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.
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
Re: Roth IRA contribution?
No. But if you want to max the Roth IRA, you need to have at least $6000 in earned income.Fishing2retire wrote: ↑Tue Sep 10, 2019 9:45 am Also is there a minimum income earner to qualify to make contributions
-
- Posts: 8912
- Joined: Thu Feb 25, 2016 6:11 pm
Re: Roth IRA contribution?
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.Fishing2retire wrote: ↑Tue Sep 10, 2019 9:45 am Also is there a minimum income earner to qualify to make contributions
Cheers
-
- Posts: 152
- Joined: Mon Jun 10, 2019 2:02 pm
Re: Roth IRA contribution?
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.