CONTRIBUTING TO ira
I am 75 and still work part time (making about $23,000 a year).
I am taking my RMD from my traditional IRAs, but I am wondering if it would be beneficial to contribute either to my ROTH IRA or to my traditional IRA. I am in the 28% income tax bracket and I am looking for ways to reduce my taxable income.
Thank you very much,
Terry Says
Well, since you’re earning money, you certainly can contribute to an IRA to reduce your income. And good for you for continuing to work!
Contributing to a Roth IRA won’t get you a deduction. But you can contribute to a traditional, deductible IRA — either at a bank or a mutual fund company like Vanguard or Fidelity. You can just put it in a money market fund if you don’t want to take any risk.
Then next year, remember you’ll have to count the balance in that IRA to calculate your RMD.
