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Subject:  Re: Fee only fiduciary advisor ? Date:  7/21/2019  11:17 AM
Author:  aj485 Number:  94580 of 100110

I have $5k in a Roth starting this year. So. . . that means I can add $2k more, while doing by taxes at the end of the year?

If you have at least $7k in earned income this year and you meet the income requirements to be able to contribute. Your MAGI for 2019 must be less than $193k (MFJ) or $122k (Single, HOH) to be able to make the full $7k contribution. You can see details on how to calculate the MAGI in IRS Pub 590-A

So I have about $2,400 income in 2020 I'm thinking. That's all I can put in the Roth, correct?

If the $2400 is earned income (from a job, self-employment, etc.) you can use it as a contribution for a Roth IRA (or a Traditional IRA if you want the tax deduction). If the $2400 is from something like dividends, capital gains, rental income or interest that isn't considered earned income, then you can't make any contribution to an IRA - Roth or otherwise.

That said - the suggestion is about Roth conversions, not Roth contributions - which is what you asked about above. Conversions occur when you move money from Traditional accounts (Traditional IRA, Rollover IRA, SIMPLE IRA, SEP IRA, 401(k), etc.) to a Roth IRA. There is no income limitation on doing conversions. You just have to be able to pay the taxes on what you're converting.

Retired May 1st. 69 last week.

You have a few issues here:

- Since you only opened the Roth IRA this year, assuming that the contribution that you made was a contribution designated for 2019, the only money that you can take out of the Roth without taxes or penalties before Jan 1, 2024 will be any contributions you have made - the $7k from this year, and potentially, the $2.4k from next year. That's because to be a qualified distribution, the account must have been opened for at least 5 tax years, in addition to you being over 59 1/2
- Until Jan 1, 2024, when your account will be 5 tax years old, each set of conversion that you do will have their own 5 year clock before they can be withdrawn, which means that even if you do a conversion this year, your conversion won't be 5 tax years old until Jan 1, 2024.
- Since you turned 69 last week, you will turn 70 in January, 2021. That means that you have only 2 years to do conversions before you have to start taking RMDs from your Traditional accounts - so your window of opportunity to decrease your RMDs is very small.
- Even worse, you will turn 70 in July, 2020, which is the latest age to start claiming SS. So beginning in 2020, you will have additional income that could push you into a higher tax bracket when figuring the taxes that will be due on the conversions.

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