roth ira:
😀 hi: i am 68 years old and have 45,000. in cd’s i would like to put in my roth ira. how much can i put in per year? i am not retired and earn 21,000 a year.thank you.
😀 hi: i am 68 years old and have 45,000. in cd’s i would like to put in my roth ira. how much can i put in per year? i am not retired and earn 21,000 a year.thank you.
Permalink Submitted by Alan Spross on Sat, 2008-03-15 19:46
You can only make regular contributions if you or a spouse has earned income at least equal to the amount of the contribution. Therefore, if you are retired and living off a pension, investments and social security you cannot make a regular contribution to any type of IRA.
However, if you have a traditional IRA account and your income is under 100,000, you can convert some or all of your traditional IRA to a Roth IRA. This is a conversion contribution, and is taxable.
If you have CDs, you will probably not be able to convert them until they mature without the bank charging a penalty. If they are in a regular taxable account, they would have to be cashed in since regular Roth contributions must be made in cash. If they are in a traditional IRA, ask the bank how you can convert them to a Roth without re issuing them at a lower rate. Probably, there is no way until they mature, but ask.