457TOTRADITIONALIRA
If I am a non spouse beneficiary of a 457 plan and take a lump sum taxable distribution, can I contribute to a traditional IRA in the same year??
If I am a non spouse beneficiary of a 457 plan and take a lump sum taxable distribution, can I contribute to a traditional IRA in the same year??
Permalink Submitted by Alan Spross on Thu, 2008-05-01 00:40
You can contribute, but the lump sum distribution will add to your modified AGI, and if you are a retirement plan participant, your modified AGI may be too high to deduct the contribution.
Permalink Submitted by Alan Spross on Thu, 2008-05-01 01:00
You can contribute, but the lump sum distribution will add to your modified AGI, and if you are a retirement plan participant, your modified AGI may be too high to deduct the contribution.
Permalink Submitted by BruceM on Thu, 2008-05-01 18:45
These two events are really separate and have nothing to do with one another except for the ability to deduct a TIRA contribution as Alan points out. What you require to make a TIRA contribution is earned income or alimony that combined, at least equals the amount of your TIRA contribution. Other sources of income, such as retirement plan distributions, really don’t have anything to do with this.
BruceM