Yes, as long as you have earned income but it may not be such a good idea. The problem is: when you retire and cash in the IRA you pay regular income tax on the capital gains instead of capital gains tax. Of course, you have to pay income tax on the principle. A Roth IRA or just a regular brokerage account may work better. A traditional IRA is good only for those people who need the tax deduction in order to contribute the maximum amount to the IRA. If that isn't you, a traditional IRA is not a good deal at all.

If it's truly an IRA, then you can contribute to it. But you should probably open and fund a ROTH IRA instead. Or even better - -start paying down that house aggressively. you're looking at 8 years of paying a mortgage in retirement if you don't get out from under that thing.

I do not think you are in a "comfortable position" for two reasons:

One is that you presently (at 45 years old and with the info you gave) have a negative net worth - - or possibly a slightly positive net depending on the value of your home. In other words - - if we paid off all you debt today, what would you have left? This is what you TRULY are worth (financially).

The second thing that concerns me is that you did not mention any additional savings, or that you are currently making additional savings towards retirement. You are betting too heavily on the pension, and that's a bit risky. Pension benefits change, cities go bankrupt, and people get sick or lose their jobs.

I am not privy to other aspects of your finances (insurance, loans, bills, inheritance, family size, etc) - - but from what you've described, I would use the term "cautiously comfortable" over "comfortable" to describe your prospects.

You can contribute to an IRA. The tax deductibility of the contributions depends on these criteria:

http://www.irs.gov/Retirement-Plans/IRA-...

How much are you saving annually? Or, how much will you be able to save annually in this new situation?

You'll pay off the mortgage, not worried about that. You have a nice IRA going, just keep contributing.

Without knowing more, I couldn't tell you exactly what to do, but it sounds like you should max out your IRA contributions. You can also consider starting up a Roth IRA...a little more homework for you.

Good Luck.

"should I contribute to it?" - your 'trustworthy financial advisor' will know the specifics of your situation and your long term outlooks and should seek out professional advice, but if you plan to retire in 20 but still have a mortgage for 28 (and still plan to occupy said home) then you should consider paying that down or refinancing in to a 15yr note.

sounds like a qdro

is it in a tax-deductible account or is it roth?

next time you ask, be very clear

i would pay off a mortgage if that money is after tax

I just got divorced and I know nothing about money. I will find a trustworthy financial advisor but in the meantime, I'm doing my own homework. I have a $190,000 rollover IRA (I live in Illinois). Can I contribute to it...should I contribute to it? I'm 45 years old, making nearly $70,000. I have been a teacher for 7 years, so I'll have a pension. I have a $220,000 28 year balance on my mortgage. I have no idea if I'm in a comfortable position or if I'm going to the poor house when I retire in 20 years.