product inquiry
I have 2 questions, please. I’m retired, living on soc. sec. & a pension.
1. if I take money out of my 401k either because of my RDM or not, can I put it in a Roth IRA? what are the tax ramifications?
2. My GF has an existing Roth IRA, can she add to it ? She is retired & not earning any income.
Thank you,
Terry Says
OK, first things first. You can’t put money into an IRA of any type if you don’t have earned income in that year. I’m not sure if you are working or not, but your GF cannot add to hers, since you state she is not earning any income.
I would suggest that if you are retired, you roll over your old 40l(k) plan into an IRA. That’s because most 40lk plans are designed with aggressive investments that help young people build retirement savings. If you’re already retired, you might want some more conservative choices. REad this column: https://www.terrysavage.com/rollover-now/
You can do this yourself, and avoid “helpers/advisors” who want to earn a fee by giving you “advice”!!!
I see no reason to do any Roth conversions. Period.
