RMD withdrawal March 2020/Roth contribution from part time job for 2020
I took my RMD in March 2020 for 2020 with tax withheld. I have a part time job that pays $10,000/yr. I’ll be 73 in August. I have $295,600 in Vanguard IRA accounts, a Roth of $68,000 in Vanguard 500 index. I have a civil service retirement of $1800 clear per month. Regular Vanguard Intermediate Treasury account has $20,000 and Prime is $8,750. Bank accounts are $35,000 in savings and $15,000 in checking. I can contribute up to $7000 to a Roth Prime MM IRA because of my job income without it being a rollover or is it better to buy CDs now?
Terry Says
You’ve done a fine job of savings. Did you realize you didn’t need to take a RMD for 2020? See my most recent column. As for contributing to a Roth this year, the whole ideas of a Roth is to make your money grow tax-free. But in a money market fund it isn’t going to earn almost any interest! And you don’t want to take risk with it. So it’s hardly worth paying even a small annual fee to put it into a Roth in your situation.
