Roth Contributions
A client ( age 73 ) just retired on December 31st and has a 401 (k) that we know we will now have to start taking RMD’s. His wife ( age 58 ) is still working, with an income of $ 75,000.00 per year, and is still contributing to her 401(k). Up to now, they have both been making maximum contributions to their Roth IRA’s annually.
Going forward, can he continue to make contributions to his Roth being that his wife continues to work ( and they continue to fall within the guidelines ) or is he no longer eligible?
Permalink Submitted by Alan - IRA critic on Thu, 2019-02-21 23:53
He can continue by making spousal Roth contributions, income permitting, Also, if he retired on 12/31 his 401k plan will have to distribute a 2018 RMD to him by 4/1/2019. It should be calculated using Table 2 if his wife is the sole beneficiary. If his plan messes up and uses the Uniform Table, he can roll over the difference to an IRA. And if he wants to do a direct rollover of his 401k to an IRA, he will also have to receive the 2019 RMD when requesting the direct rollover.