IRA OK prior to pension eligibility
I recently retired with a small pension from one company. I have since started to work for another with a pension plan. But I will not be eligible until i work there for three years. I am 62; not on social security. AM I eligible for an IRA plan? W. M.
Yes. This year you may set aside 15 percent of your gross income up to a maximum of $1,500 ($1,750 for spousal IRA) in an individdual retirement account, and starting next year, 100 percent of compensation up to $2,000 ($2,250 spousal plan) each year. The newly passed Economic Recovery Act of 1981 also allows active participants in "qualified plan," such as corporate pension or profit-sharing plans, to deduct contributions to IRAs up to the new $2,000 limitation.