Roth IRA contribution?

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Topic Author
Fishing2retire
Posts: 38
Joined: Mon Jun 10, 2019 2:02 pm

Roth IRA contribution?

Post by Fishing2retire » Tue Sep 10, 2019 8:52 am

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
Posts: 2875
Joined: Thu Feb 25, 2016 7:11 pm

Re: Roth IRA contribution?

Post by Silk McCue » 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.

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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Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Roth IRA contribution?

Post by David Jay » Tue Sep 10, 2019 9:17 am

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.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

Topic Author
Fishing2retire
Posts: 38
Joined: Mon Jun 10, 2019 2:02 pm

Re: Roth IRA contribution?

Post by Fishing2retire » 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.

Topic Author
Fishing2retire
Posts: 38
Joined: Mon Jun 10, 2019 2:02 pm

Re: Roth IRA contribution?

Post by Fishing2retire » Tue Sep 10, 2019 9:45 am

Also is there a minimum income earner to qualify to make contributions

Silk McCue
Posts: 2875
Joined: Thu Feb 25, 2016 7:11 pm

Re: Roth IRA contribution?

Post by Silk McCue » Tue Sep 10, 2019 9:46 am

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
Posts: 2221
Joined: Fri Mar 18, 2011 9:59 am

Re: Roth IRA contribution?

Post by lakpr » Tue Sep 10, 2019 9:47 am

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: 2875
Joined: Thu Feb 25, 2016 7:11 pm

Re: Roth IRA contribution?

Post by Silk McCue » Tue Sep 10, 2019 9:48 am

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: 38
Joined: Mon Jun 10, 2019 2:02 pm

Re: Roth IRA contribution?

Post by Fishing2retire » Tue Sep 10, 2019 10:06 am

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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