Roth IRA

By Terry Savage on January 27, 2025 | Financial Planning / Retirement

We are a married couple wife 60, myself 59. I will be collecting a firefighter pension in 1.5 years. My wife works, she has a 401k through her employer. Does it make sense to open a Roth IRA at this point in our lives?

Terry Says

If you have earned income, you can contribute up to $8,000 since you are over age 50. You have until April 15th to make a contribution for 2024, and then you can contribute another $8,000 during this year for 2025. You don’t get a tax deduction but the money will grow tax-free — and there are no required withdrawals. So yes, each of you should open a Roth IRA for2024 and 2025.

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