Ira
Hi Terry I love listen to you on WGN your the best . Iv been listening to you talk about the Roth IRA on your pod cast I’m wondering at my job i invest in a 403b should I switch and start to invest in a Roth instead and leave what I have in the 403b ? I know to convert from a regular ira to a Roth can be expensive so we might try to do that with my wife’s ira for now since we have to pay tax on the conversion. I hope this makes since . FYI We’re both 54 . I wish you did a show like Lou does on Saturday morning you help so many people out it so nice of you .
Thanks Tom
Terry Says
You should contribute to the 403(b) at least to get your full employer match. then you can also contribute up to $7,000 (since you are over50) to a Roth IRA if you meet the income limits. For 2020, those limits are $196,000 if married filing a joint return. Above that income your eligibility to contribute to a Roth phases out.
If you convert your wife’s IRA to a Roth, make sure you have the money to pay the taxes OUTSIDE the IRA!
As for the last sentence, I’m working on that!!