Roth versus traditional - It is your money Posted: Feb 12th, 2023 - 9:52 am In Reply to: Traditional IRA vs Roth IRA - What We Did
Actually, Roth IRAs are taxed on the front end instead of when you withdraw the funds, they are not tax free. Also know that IRA contributions can only be made from earned income, which means if you are no longer working, you can’t make contributions. There is also a Required Minimum Withdrawal at age 70 where you have to start taking 3% of your funds if they are in an IRA. Some MTs are in a situation where they are retiring at 62 and taking their funds because their SS income is more than they make at their jobs and don’t have backup funds. Another option for investing could be an annuity with guaranteed payouts over a certain number of years. I agree that it is best for the OP to meet with an advisor to assess the options and come up with a plan that works for them.
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