IRA, Pera, James discussed on 830 WCCO 24 Hour News
So I looked it up Colorado public employees retirement association, which provides retirement and other benefits to the employees of more than five hundred government agencies and public entities in the state of Colorado. And it says most of para members of Pera include employees of state government school, blah, blah, blah, and it is a substitute for social security for most of these public employee's benefits are pre funded which means while a member is working here. She is required to contribute a fix percentage of salary to the retirement trust funds. Okay. So that's what we got. Back to Renee, a co worker retired early and went to work for four years in the public sector again due to it had advice from a financial adviser. I don't know any of the details. What I'm wondering is how I would know what I should do since. I only had ten more years to work. Hopefully, I've heard that it's possible to lose some of my social security because of Pera. Well, usually, that's exactly what would happen is that you would essentially have some way would you lose some portion of your social security benefits that coordinates then with your para benefits. Here's what I would do. I would talk to one of the people at para itself and ask them about this because you know, it may be that you are going to lose some of the benefits, but you've got great benefits from Pera who knows? But what I do know is that I don't know the answer to this. This is a very specific question. Usually these plans do not allow for a double dipping that doesn't mean. It's I'm not saying, it's a bad thing. I'm just say that it doesn't usually allow to have two things coming in at the same time to streams of retirement and cubs. So you're going to have to check it out. I know it's a pain in the neck. James is considering doing a back door Roth, but he has been reluctant because of all the perceived complications and potential pitfalls and doing so here are the facts James is a high income and subject to all the phase outs high. He's got a high cost 4._0._1._K and a pension and profit sharing at work. He max is out with a ketchup sixty thousand dollars a year. He's got an old set by RA with about a hundred grand in it and a traditional IRA with five thousand dollars in their wife, high income mega corporation has a very good for a one K. She's got a matching maxes out at twenty-five brandy year. She's got an old traditional IRA set by array of four an and a. An independent 4._0._1._K from side business. She does and still contributes and inherited IRA. But I don't think it matters for discussion of our MD's. The question is I know she can reverse rollover her IRA's into the 4._0._1._K. So yeah. Because what happens is if you have these old retirement plans kicking around they make a back door conversion I've sorry a back door Roth very hard because they take into account all the traditional IRA assets you hat. So remember here, we got the wife, right? She's got the old IRA set by RA, and she she has this current 4._0._1._K. So what she can do is roll over these old accounts into her her Uni 4._0._1._K or the independent one. Okay. So that's good. So how can I convert myself are IRA and my traditional IRA into a 4._0._1._K? Do I have to find a separate business with income to open it an independent 4._0._1._K?.