73 year old Roth questions
Hello,
I have a client that has gotten a 2009 IRA distribution from a traditional IRA.
Can this be used for a Roth IRA conversion?
Can this be used for a Roth Contribution (I don’t think it can)?
Can he contribute (not convert) to a Roth IRA at age 73 as he has earned income?
Thank you,
Chris
Permalink Submitted by Alan Spross on Mon, 2009-12-21 16:12
There is no age limit for Roth IRA contributions providing client has earned income.
The 2009 distribution from the TIRA is not deemed to include any RMD dollars because the RMD for 2009 has been waived. If client’s 2009 modified AGI is not over 100,000 AND the distribution was in the last 60 days, client could roll any portion of the distribution over as a Roth conversion. At age 73, client can tap Roth conversions right away because the 5 year holding period to avoid the penalty does not apply after 59.5.
The TIRA distribution can also be used to fund a regular Roth contribution if client has the earned income. Since that would not be a conversion, there is no need to fund the Roth contribution within 60 days, and the contribution deadline for 2009 willl be 4/15/2010. There are also income limits for making a regular Roth contribution.
Permalink Submitted by [email protected] on Mon, 2009-12-21 17:28
Thank you Alan,
Merry Christmas!!