Thursday, June 16, 2011

Required Minimum Distributions Highlight Mailbag

Summer is in full swing, so this week's Slott Report Mailbag features just one question from a retiree who is planning on taking RMDs (Required Minimum Distributions). As always, we stress the importance of working with a competent, educated financial advisor to keep your retirement nest egg safe and secure. Find out at this link.


Are you allowed to contribute to a Roth if you have earned income and are 70 years old? I will be taking my first Required Minimum Distribution this year in 2011.

Yes you can contribute to a Roth IRA after age 70 1/2 so long as you have earned income.  There are however phase out limits.  For 2011 if your filing a joint return the phase out starts at $169,000 and completely phases out at $179,000.  The numbers for single filers are $107,000 - $122,000.  There are no RMDs from a Roth IRA during lifetime unless it is an inherited Roth IRA. In addition an inherited Roth IRA can not receive a contribution.

By Marvin Rotenberg and Jared Trexler
Comment, Question, Discussion Topic on your mind? Click on the Blue Comment Link below and leave your thoughts then check back to see what other consumers and advisors think.

Also, share this article on Facebook, Twitter, and show us you approve with the Google +1 app under each title.

*Copyright 2011 Ed Slott and Company, LLC