Ask Terry Questions IRA — Regular or Roth?

IRA — Regular or Roth?

By Terry Savage on February 24, 2024 | Investments

I’ll be 73 in December and must take RMD’s from my 403b’s. I think I’ll put the funds into a Roth. Obviously I’m not saving for retirement since I’ve been retired for 7 years. I live on my pension and don’t need these funds. Please explain the difference between regular IRA and roth. What do you suggest for me ? Is any IRA a good option for me?

Terry Says

No, no no!! You can’t put money into any kind of IRA unless you have EARNED INCOME. That does not include IRA withdrawal money or interest or pensions.
If you have “extra” money after paying taxes on your required minimum distribution, put it in a money market in the bank or in U.S. Treasury bills.
Here’s how to buy them:

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