ROTH and/or TIRA contribution with ongoing 72T
Can I contribute to a Roth IRA while also making withdrawals from a TIRA for an ongoing SEPP 72T? I am retired, but my husband has earned income. Are there any problems with this that I should be aware of?
Thanks
Permalink Submitted by mk foss on Sat, 2009-02-21 20:31
There are no problems with making a Roth contribution. The Roth regulations even provide an example of what must occur if someone converts the IRA from which the payments are being withdrawn to a Roth (withdrawals must continue).
You would only have a problem if you took the contribution funds from the IRA where the 72t withdrawals are coming in addition to the regular payments.
Permalink Submitted by Anonymous (not verified) on Sat, 2009-02-21 20:57
Also, be totally sure not to make any new regular contributions to an IRA account that is part of your SEPP plan. Either make them to an IRA that was never part of your plan or to a newly created account, either Roth or TIRA. Contributing to an existing IRA used for your SEPP plan will bust the plan.