Roth IRA
Hello, I’m 73 years old and I do have a Roth IRA with Schwab. In 2021 I have $ 100/bi-weekly into my Roth IRA from my day job (26 X 100 = $ 2600/year) + (Gross earnings over $ 35 K/year). I also contributed an additional $ 6950.00 into this IRA. I’m married and jointly our AGI is about $ 225K for 2021. Is any of my contributions taxable?
Also I made no withdraws from this account. None. For 2022, can I continue to contribute $ 100/Bi-weekly (26 times a year = $2600) + contribute another $ 6950.00 also into my Roth IRA? Thank you for your assistance in answering my two questions. Your WGN Radio program is very good. Thanks
Terry Says
Well, I’m not quite sure you understand how a Roth IRA works. You don’t get ANY deduction for your contributions. In other words, you do pay taxes on all the money you put into this account. BUT you pay no taxes on your contributions OR gains when you withdraw. And you are never forced to withdraw from a Roth IRA –no matter what age.
At your age, you are entitled to contribute as much as $7,000 a year (either all at once, or along the way during the year) — BUT ONLY if you have at least this much in EARNED INCOME – -that is income from work — not dividends, or interest or savings. So do keep contributing if you are eligible.
But you might want to review how your Roth IRA is invested, and make sure you get a bit conservative as you get older.
