Ask Terry Questions Federal government retiree outside income

Federal government retiree outside income

By Terry Savage on June 08, 2020 | Financial Planning / Retirement

I am a Federal Government Retiree with a part time job, this year I earned about $1,200. 00 can I put this in a Roth IRA? Can I also put it in a Roth IRA for my wife if she has no income other than her Social Security, which I don’t qualify for, and a pension from her former employer?

Terry Says

well, you could contribute to a Roth IRA for yourself (or for your wife) up to the limit of your earned income (not including pensions, SS, etc). But the real question is WHY you would want to do that if you’re a retiree. I’m assuming you don’t want to take a lot of risk with this money. You’d probably leave it in CDs. And in that case, it really doesnt matter that the money is growing tax-deferred.

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