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Posted by joetaxpayer on January 29, 2008, 5:35 pm
sandybeth wrote:
> My husband and I are both retired, ages 62 & 61. We have pensions and
> will be getting SS. No debts. We also have conservatively invested
> monies we can tap into for big purchases if needed. We both have
> traditional IRA's and Roths.
> 1) Assuming we have part-time jobs to equal the contributions, is it
> still wise for us to be contributing to our Roth's every year? The
> only downside I see is that we can't take the money out for 5 years
> without penalty.
> 2) Hypothetically, can one contribute to a Roth even after turning,
> say, age 71 and is earning equal money? Or is there an age limit?
> 3) Can one contribute several times to the Roth during a given year?
> For example, I made a contribution of $3000 last May (for 2007) but
> ended up earning more than expected from a job, so want to contribute
> that much more before April for the 2007 year.
> SandyBeth
1) Yes, if you don't need the money, it is wise. $6000 is the limit for
2008. There is no downside. The 5 year rule is not for deposits, but for
conversions and income. (Which is why I advocate the dual use of Roth
for emergency fund and start of retirement savings for beginners who
cannot fund both)
2) I believe there is no age limit, just the income requirement.
3) Sure, many people have $X taken out of each paycheck, so they have 52
deposits per year to their IRA.
JOE
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