Roth VS Traditional IRA USE
I will be 72 this year. When it”s time to start my required distributions my new advisor said I should use the the one that the taxes are the highest in first since taxes will only get higher as time goes on. I always heard use the Roth last. Most of my money is in traditional IRA. What do you advise?
Thanks so much.
Terry Says
YOu won’t be required to take withdrawals till next year — 2024– under the new rules. And you will have no choice but to take a RMD from your traditional IRA. The IRA custodian will calculate the amount based on IRS tables created by your life expectancy. Accumulate some cash inside that IRA to facilitate the withdrawal.
There is NO RMD on your Roth IRA. Use the money tax-free when you need it — postponing as long as possible, and investing conservatively in the meantime.
