Planning for retirement after divorce

Terry,
We have spoken before and today after 4 1/2 years of a divorce and a lengthy trial I am divorced. I will be paying $60,000 to my ex of my retirement accounts (QDRO). It could have been worse, since half of my retirement account would have meant $300,000+. At the age of 64 I need to accelerate my contributions to my 401K. I am deducting 13% of my income to my 401K. Which means approximately $15,000 per year. Am I eligible to also eligible to put funds in an IRA. What is the maximum at my age.

Terry Says:  Since you are an active participant in a 40l(k) plan, with a substantial income, you can CONTRIBUTE to an IRA — BUT you cannot deduct your contribution.  You earn too much to make it a Roth IRA.  But your non-deductible contribution to a traditional IRA will still grow tax deferred.  And since you are above age 50, you can contribute $6500 for 2014 (the standard $5500 plus a $1,000 “catch up” provision).  Do it as soon as you can — although you have until your tax return is due to make the contribution for 2014.  Then make the 2015 contribution early in the year.  Time is particularly important because at age 70-1/2 all this money and your 40l(k) (unless you are still working) will be subject to the RMD — required minimum distribution provisions.

AND,  congratulations on settling your divorce.  Next time (just in case!) read The New Love Deal:  Everything You Must Know Before Marrying, Moving In, or Moving On!  available at my website!   And pass it on to those who are younger and hope they never go through what just happened to you!