5 replies

  1. That last point on the Roth IRA is significant (won’t owe tax). Withdrawals after age 59.5 are free from taxes, which also means that they won’t increase your taxable income. That will be important because taxes on social security benefits are determined by taxable income level–the lower it is the less tax you’ll pay on your social security.
    Also, there are no required minimum distributions on Roth IRAs so you can let the money build for the later years of your retirement. All other plans require distributions beginning at age 70.5.

  2. Need help figuring out my investment options. Last time I got information it was from here. Can anyone help me understand this?

  3. I’ve written a number of articles about the various IRA options: http://www.tomcopelandblog.com/money-management-retirement.html

  4. Tom- I am already 60 years old and want to start another IRA this year. Does that affect the tax status? If so, how?

  5. The sooner you invest through an IRA the better. If you choose a deductible IRA, you can reduce your current year’s taxable income when you make a contribution. Your age doesn’t matter for this.

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