Tldr; My MIL inherited 100k via a check from John Hancock, we want to put $6500 $7000 of that into a Roth IRA, and the rest in a regular brokerage account.
I'm trying to help my MIL understand what she can and can't put in a Roth IRA. She, inherited 100k which was disbursed to her via check from John Hancock (not sure if it was from insurance policy or a retirement account). She is curious which accounts to invest this in and I'm trying to help her. The plan right now is to invest $6500 $7000 into a Roth IRA (she is over age 50 and makes ~45k/year), and the rest into a regular brokerage account. Moving forward I will have her add to her IRA as she can, and basically not touch he brokerage account. She also has a small 401k with work.
I know there is a rule about contributing to an IRA with earned income.. but is that applicable in our scenario? Sure the money is not from her earned income, but we are contributing much less than her earned income.
Submitted August 05, 2021 at 08:08AM by huge-toad https://ift.tt/2VuXRDb
