IRA Contributions After Starting SEPP
L1: IRA Contributions After Starting SEPP
I am 54 years-old and began SEPP distributions in July 2017. I receive roughly $14,800 twice a year from my TIRA through the SEPP. I have part-time work income this year that exceeds my financial needs so I would like to contribute up to the $6,500 limit to an IRA for 2018. I know that I cannot contribute to the fund from which I am drawing my SEPP. But am I allowed to set up a new TIRA and contribute to that?
2018-12-24 15:33, By: BobS, IP: [2600:6c44:e80:237b:90f9:4c60:d170:bc12]
L2: IRA Contributions After Starting SEPP
Yes, you can open a new TIRA account and make a contribution, or you could contribute to any current IRA account that is not part of your SEPP. Since you will obviously have more than one IRA account, be particularly careful that any contributions go into the right one and distributions come from the right one. If you open a new account, you can also later take distributions from it subject to penalty that would serve as insurance against busting your SEPP if your SEPP distribution become inadequate to cover expenses.
2018-12-24 15:45, By: Alan S, IP: [22.214.171.124]
L3: IRA Contributions After Starting SEPP
Great! Thank you, Alan!
2018-12-24 16:52, By: BobS, IP: [2600:6c44:e80:237b:90f9:4c60:d170:bc12]