Roth IRA

By Terry Savage on October 24, 2024 | Financial Planning / Retirement

My wife and I are 54 and 50 years old we both have retirement plans separate savings of about $170,000,we were thinking of opening a Roth IRA together and looks like we are able to put $16,000 yearly into this just looking to have some non taxable income in retirement.we don’t have any credit card debt or car loans just mortgage on home with a very low interest rate,just wanted to get your advice thank you

Terry Says

Wait. ALL retirement plans are separate!@ You cannot open any retirement plan “together”!

AND, you must have earned income to contribute to a Roth IRA. You could each open a separate Roth IRA at Fidelity or Vanguard and put up to $8000 in this year — IF you earned that much each. YOu won’t get a tax deduction, but the money will grow tax free for retirement. You must leave it in the account for at least 5 years.

If you’re not working, just keep saving in a money market deposit account in your bank. You’ll pay taxes on the interest but itwill be safe.

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