Money market IRA
Dear Terry,
Lately I’ve been entertaining the thought of opening a money market IRA because of the easy liquidity feature. I’m not concerned about the low interest rates because I have other IRA types in place. Seems like a good idea for emergency use. I am also over 60 years young so no penalty feature there. Even though I’ve read a few articles on this I am always interested in your take on the subject. Your opinion please. Thank you so much.
Terry Says
If you qualify to contribute to an IRA based on EARNED income, no problem opening an IRA at either a bank or a mutual fund company like Fidelity or Vanguard. But each institution may have requirements that the money be left inside the IRA for a period of time. Or you can roll over a portion of an existing IRA to a MM fund at the same institution, and take withdrawals from that account, paying taxes of course.
