Wayne, 59 and single, was a highly-compensated Senior Global Manager of Enterprise Product Synergy Development and Cyber
Question:
Wayne, 59 and single, was a highly-compensated Senior Global Manager of Enterprise Product Synergy Development and Cyber Security, but he left that job to work as a flight instructor, where his yearly taxable income is $40,000, and there is no retirement plan. When he turns 65, he will start receiving mandatory pension benefits of $120,000 per year. He also has $1,000,000 in his 401(k) plan, $3,500,000 in his Traditional IRA, and $400,000 in a Roth IRA. Wayne's house is paid off and he has more than enough cash flow and other resources to meet his current spending needs.
a. Should Wayne make contributions to his Roth IRA this year? Why or why not?
b. Should Wayne initiate a Roth conversion this year? Why or why not? If yes, how much do you recommend he convert?
Project Management The Managerial Process
ISBN: 9781260570434
8th Edition
Authors: Eric W Larson, Clifford F. Gray