Q. I retired in January 2021. I grossed $4,300 and I have not worked since. How much can I contribute to my existing Roth IRA for 2021?
— Love to save
A. We love seeing people save for retirement.
You can make a contribution because you had earned income during the year.
For 2021, the maximum contribution to a Roth IRA is the lesser of your earned compensation for the year or $6,000, though those who are age 50 or older can save a total of $7,000, said Stephanie Spies, a certified financial planner with Modera Wealth Management in Westwood.
“There are also additional requirements based on your tax filing status and modified adjusted gross income, which takes income from investments, pensions, Social Security and other income into consideration,” Spies said.
In your case, you can contribute your full earnings amount of $4,300 to a Roth IRA for 2021 provided that you meet the other income requirements, Spies said.
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Karin Price Mueller writes the Bamboozled column for NJ Advance Media and is the founder of NJMoneyHelp.com. Follow NJMoneyHelp on Twitter @NJMoneyHelp. Find NJMoneyHelp on Facebook. Sign up for NJMoneyHelp.com’s weekly e-newsletter.