Can I fund a Traditional IRA, a 403(b) or a Roth IRA using pension money? I'm 56 years old. What limits apply if I can?

By Denise Appleby AAA
A:

Generally, for purposes of contributing to IRAs, 403(b)s and other retirement accounts, compensation is defined as income received in exchange for personal services. This does not include pension income.

If you are not eligible to contribute to an IRA or a qualified plan, you may consider other options such as tax-deferred annuities, investing your assets in a portfolio balanced to suit your financial profile, etc. You may want to contact your financial consultant to discuss the various options and determine which is best for you.

(For more information on saving for retirement visit Fundamentals of a Successful Savings Program, An Overview of Annuities, Managing Income During Retirement.)

This question was answered by Denise Appleby
(Contact Denise)

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