roth contribution with pension
Have client who earns a salary of 87,000 per year and $39,000 from her ex husband’s pension.
She files married file separate:
Questions:
1. I know you cannot fund a Roth with pension money, however does the income from the Pension count towards income for Roth contributions?
2. If she makes 87k at her job and 39k from the pension, can she still contribute the 7k (over 50) to her Roth IRA?
3. She does contribute to a 401k of 10%, which would not effect her contribution to her Roth, correct?
thank you
Doug
Permalink Submitted by Alan - IRA critic on Mon, 2022-03-21 21:02
If she lives with her husband at any time during the year, she cannot make a Roth contribution if her modified AGI exceeds 10k when MFS. Therefore, very few people can make a Roth contribution when MFS.
No contribution since either income source is well over 10k.
Correct.
If she has no pre tax IRA account, she could make a non deductible TIRA contribution of 7k, then convert it to Roth tax free (back door Roth).