Ask Terry Questions Retirement accounts

Retirement accounts

By Terry Savage on February 17, 2015 | Financial Planning / Retirement

I am 64 years old and retired from the educational system. I receive a monthly pension from the California State Teachers’ Retirement System. I would like to go back to work as a consultant in an unrelated field in the private sector and start a Roth IRA for myself. Can I do that and what limitations if any are there in terms of what I make. Thank you so much in advance for any help you can provide.

Terry Says:  I think it’s a great idea to continue working.  The longer you can postpone withdrawing from your savings, and keep adding to those savings, the better your retirement will be.  And now, while you have the strength and interest to pursue another career, is the time to do it!  If you fall under the income limits for a Roth IRA, you can certainly make a contribution based on your current earnings from work.  For 2015, the earnings contribution limit is about $116,000 for a single person. (That would not include your pension income, since it is not earned income.)

As for the rules regarding the impact of additional earnings on your pension payout, you would have to contact CALSTERS to get the specifics.



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