Roth IRA
Hi Terry, I listen to you every Wednesday with John Williams on wgn… you’re amazing.
Question: I have an IRA with Fisher Investments and love what they’re doing with my money. I have a option to put some of it in a Roth IRA with them. I’m 63, plan on retirement at 67. But I don’t know how much to put in it? How does the tax work on it? I have over 1.3 mil. In their regular IRA. I just heard it’s a great thing to do…thanks.
Terry Says
A Roth IRA is a non-deductible contribution — up to $8,000 allowed this year if you’re over age 50. And it must be made out of earned income. Since you’re still working, that is not a problem.
You don’t get the deduction, but the money grows tax-free when you choose to withdraw it after at least 5 years. And it is not subject to Required Minimum Distributions.
What troubles me about your question is the fact that you’re obviously getting good investment advice from Fisher but you’re not getting any financial PLANNING advice. This is the moment when you should be considering retirement income planning. For that you need a fee-only FIDUCIARY certified financial planner. You might benefit from just one session to learn what you haven’t covered! (Things like Social Security, estate planning, withdrawal strategies) Check out the services of Wealthramp.com.
