Traditional or Roth IRA?

[Cadcom]

You pay tax on the contribution. That is all. You will never pay tax again on earnings. Also no required distributions. That's a big plus as well. It is all yours. When you pass, your heirs will get it tax free. But they have to dissolve the account in 10yrs. Even if your spouse survives you, it goes on as if you were living. It's the kids that have to dissolve the account back into regular funds

I've been steered wrong for years now. Looks like I ned to make a change.

 

[Eggmanmja01]

I am confused about the pre-tax after tax meaning. I am retired so I will be doing it myself without an employer. ALL of the the money I invest is mine.

 

[basstracker89]

I am confused about the pre-tax after tax meaning. I am retired so I will be doing it myself without an employer. ALL of the the money I invest is mine.

Unless you have a spouse still working or your self employed, you can't have a new IRA. If you have money in IRAs you can roll those over to a Roth. But you will have to pay tax on those amounts. You don't have to do it all at once. You can do a little at a time. Then you would need to wait 5yrs to access the money without penalty. Each time you do a rollover, there is a 5yr wait to access the money.

 

[Eggmanmja01]

Unless you have a spouse still working or your self employed, you can't have a new IRA. If you have money in IRAs you can roll those over to a Roth. But you will have to pay tax on those amounts. You don't have to do it all at once. You can do a little at a time. Then you would need to wait 5yrs to access the money without penalty. Each time you do a rollover, there is a 5yr wait to access the money.

I must be thinking of IRA CERTIFICATES

 

[basstracker89]

I must be thinking of IRA CERTIFICATES

I did that way too long. Took some investing to be where I should be. You're better to invest in stocks to get ahead of inflation. And with the Roth, it's all yours. No taxes or RMDs