Monday, January 18, 2021

2 days to inauguration & Money Monday

So far the demonstrations at different state capitals have been peaceful as far as I know. Hoping it stays that way!

___________________________________________________________________

On the money in retirement front:

This is my first year having to take a required minimum distribution. I logged in and went through the steps to set up the payment for late this year only to find out you can only put in a date that is 180 days or less away. Why not put that info at the front end lol. Noted to come back and do it in June. 

We are thinking of putting it right back into our Roth accounts as they are earning more than any other investment we have. Has anyone else made Roth contributions after retirement?

13 comments:

  1. Fingers crossed for the rest of the week of peaceful or no demonstrations.

    ReplyDelete
  2. You can only contribute to a Roth if you have earned income. So if one of you is still working, you could contribute to that person's Roth or to a spousal Roth.

    ReplyDelete
  3. Keeping my fingers crossed that everything is quiet on the 20th.

    God bless.

    ReplyDelete
  4. This comment has been removed by the author.

    ReplyDelete
  5. You cannot contribute to a Roth if you are not working. You can convert Traditional IRA money into Roth after paying taxes. You still have to take your min distribution and pay those taxes as well. A conversion cannot be done on a min distribution. Clear as mud?

    ReplyDelete
    Replies
    1. Yes. I should have done research before posing the question posed. by my husband lol.

      Delete
  6. I do assume that you are 72. You do not have to take a distribution until, then as of last year.

    ReplyDelete
    Replies
    1. I turn 72 later this year so do have to take it.

      Delete
  7. Regardless of whether you have earned income, IRS rules do not allow the RMD from a traditional IRA to be converted to a Roth. You can however convert amounts that you withdraw from a traditional IRA that exceed the RMD. For example, if your RMD is $10,000 and you withdraw $15,000 for that year, you can convert $5,000 to a Roth IRA. You would of course owe income taxes on the full $15,000.

    ReplyDelete
  8. Investment contributions but not retirement contributions.

    ReplyDelete

Week 3: Not the house for us but another will be

Being even more intentional than usual in my daily life while continuing to appreciate the present. MOVING? On Tuesday Hubby examined the ho...