Retirement Plan
have read Ed’s book and listened to his CD’s and appreciate. Am 701/2 still working with a decent annual income>300K practicing medicine in a partnership group. Have a DBP worth $1mil and PSP worth $800K. I am told minimum withdraw for this yr is 70k and 31K respectively. can I open a Roth IRA? and how much can I contribute annually? Is it true that minimum withdraw in DBP is twice as much as PSP?.Ths
Permalink Submitted by Alan - IRA critic on Mon, 2014-06-16 20:54
You are apparently a greater than 5% owner of the group which results in RMDs starting at 70.5 even though you are still working. I think that the 70k RMD is the total of both plans since 31k for the PSP is about right for a prior year balance of somewhat more than 800k and the DBP RMD would be 25% more than the PSP RMD as the value was 25% more. If the plan confirms that 70k is correct for the DBP by itself, then it may suggest that the plan is being annuitized over your life expectancy or joint life expectancy if you are married.
Permalink Submitted by mk foss on Mon, 2014-06-16 22:40
Your income is too high to contribute to a Roth IRA. Your age is not a factor but your income level is. Search this forum for “back door Roth” to see if a contribution made that way will help. For a tax free Roth contribution through the back door you cannot have any existing IRAs (traditional, rollover, SEP or Simple IRAs).