distribution out of traditional IRA to contribute to Roth
my client is 74 and she less than 60 days ago did a distribution out of her traditional IRA for 17000. how much of that could she contribute to Roth. she does have earned income. her earned income was about 1000.00. she could not make contributions larger than 1000.00. could she?
Permalink Submitted by mk foss on Wed, 2009-01-07 00:44
Since a Roth contribution is not deductible, it isn’t relevant that she took a distribution from her traditional IRA. The Roth contribution is limited to earned income. At this time of year, she could make a contribution based on 2008 earnings and on 2009 earnings.
This assumes of course that she is within the modified AGI limits. If she’s over the limits, she could convert the Roth to a nondeductible IRA.
Permalink Submitted by Ruth Padorr on Sun, 2015-12-27 23:11
I am 74 years old and my accountant told me to take out 20% from my IRA’s and 401K to comply with the distribution requirements. I have been doing that. However,. I find myself putting this money in the savings in case I need it. Can I take out less and enable the 401K and IRA’s to keep on growing?
Permalink Submitted by David Mertz on Sun, 2015-12-27 23:50
Permalink Submitted by Alan - IRA critic on Mon, 2015-12-28 00:29