Q. I retired from the Air Force Reserve last January and was transferred from Arizona to McChord Air Force Base, Wash. I also continue to work for the Defense Department. I plan on retiring as soon as possible from civil service. I contributed to a military Thrift Savings Plan and a civil service TSP. I cashed in both in December as I thought I was going to be able to retire this February. I planned to use the proceeds to purchase a home in Arizona. Now it looks like I have at least nine more months until I can retire. I spent some of the money to pay off all debt. I now have about $110,000 sitting in a savings account. What should I do with it? My wife and I also each have Roth IRAs. I continue to put $200 a month in mine. My wife is not working in Washington state and has only put $100 in hers this year. Can we add to those? Or should we put money in a money market account?
A. What you do with the money should depend entirely on when it will be needed. You may contribute to a Roth IRA if you have earned income and fall under the income limit for the year.