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Roth Contribution question
10-24-2018, 03:11 AM
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#1
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gone traveling
Join Date: Mar 2017
Posts: 284
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Roth Contribution question
For the last 5 years before I retired, I had been happily taking advantage of the ability to put in $6500 to both DW and my Roth IRA accounts. This year, without thinking, I put in the same, then I realized (probably after reading something here), that with no W2 income I could not contribute. So I had Fidelity help me undo my contribution (DW will have about $12K of W2 income).
Next, two things happened. First, I remembered that I did receive a bonus check from my 2017 employment that will look like W2 income, in the amount of $3000. Next, we met with our Fidelity rep yesterday, and he said that I could have still done my $6500 because, since we file jointly, our total W2 income will exceed the $13K combined amount needed.
Does anyone else agree that this is the case? If so, I will put back in my $6500, but at a minimum, I will put in my $3000.
Thanks,
Bood
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10-24-2018, 04:14 AM
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#2
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Recycles dryer sheets
Join Date: Jun 2013
Posts: 98
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Quote:
Originally Posted by BoodaGazelle
For the last 5 years before I retired, I had been happily taking advantage of the ability to put in $6500 to both DW and my Roth IRA accounts. This year, without thinking, I put in the same, then I realized (probably after reading something here), that with no W2 income I could not contribute. So I had Fidelity help me undo my contribution (DW will have about $12K of W2 income).
Next, two things happened. First, I remembered that I did receive a bonus check from my 2017 employment that will look like W2 income, in the amount of $3000. Next, we met with our Fidelity rep yesterday, and he said that I could have still done my $6500 because, since we file jointly, our total W2 income will exceed the $13K combined amount needed.
Does anyone else agree that this is the case? If so, I will put back in my $6500, but at a minimum, I will put in my $3000.
Thanks,
Bood
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Yes ..... https://www.fool.com/retirement/2016...good-idea.aspx
https://www.rothira.com/one-job-two-roths
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Roth Conversion questions
10-24-2018, 04:19 AM
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#3
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gone traveling
Join Date: Mar 2017
Posts: 284
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Roth Conversion questions
Quote:
Originally Posted by canuck5
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Thanks... just making sure!
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10-24-2018, 05:10 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Jan 2006
Posts: 4,172
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Quote:
Originally Posted by BoodaGazelle
.............................. So I had Fidelity help me undo my contribution (DW will have about $12K of W2 income).
.................................................. ....................
Does anyone else agree that this is the case? If so, I will put back in my $6500, but at a minimum, I will put in my $3000.
Thanks,
Bood
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Yes, just make that you actually did undo the contribution (not just withdrew
$6500). You should have withdrawn $6500 + earnings for a valid undoing of this yrs contributions. If not done properly the 2nd contribution
could be an excess contribution.
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10-24-2018, 05:28 AM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,376
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Yes, I agree.... between your DW's $12k of earned income and your $3k, you can each make $6,500 contributions.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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10-24-2018, 05:30 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,228
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Could a mod fix the title? This is a Roth Contribution question, not conversion.
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10-24-2018, 05:32 AM
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#7
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,726
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Quote:
Originally Posted by RunningBum
Could a mod fix the title? This is a Roth Contribution question, not conversion.
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Thread title changed.
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