Posted: 4/6/2004 11:10:16 AM EDT
| Ok, time for me to draw on the general knowledge of the board. I'd like to open a Roth IRA, but I know NOTHING, repeat NOTHING about it. I'm going to talk to the financial advisor at USAA about it, but I'd also like to hear you guys input. I know I can only put in $3000/year and that past 59.5 years I can withdraw without penalty. That's...about all I know. Any help? I know that's rather general... |
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Another great thing about Roth IRAs is the ability to fund them after 70.5 years of age if for some reason you are still earning an income. There is a cut off point for income, if you make more than a certain amount you cannot use a Roth. With a Traditional IRA you are forced to begin drawing at age 70.5. The best thing about a Roth is the fact that your money is withdrawn tax free. The Taxman either gets your money now or he gets it later. Due to inflation I prefer to pay him now. YMMV 96Ag |
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After age 50 you can make "catch up" contributions of $500, so your total contribution would be $3500. Also, the limit increases to $4000 in 2005. If you haven't contributed for 2003, you can still do so before 15 April. If you're under 50 you could contribute $6000 right now. If you're over 50 you could contribute $7000 right now. (2003 and 2004 contributions) This is probably my 4th post or so giving out free financial advise. In all likelihood it will be my last. I'm leaving the realm of being a financial advisor and heading to Iraq to work in protective services next week. You guys are on your own (financial advise-wise that is) |