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Opening a Roth IRA after 60 means you don't have to worry about an early withdrawal penalty, but you'll have to wait five years to take out money tax-free.
For example, Paul is 60 years old and, after years of diligent saving and successful investing, he’s amassed a large balance in his retirement accounts, including his traditional IRA.
With a Roth IRA, you deposit after-tax money, can invest in a range of assets and withdraw the money tax-free after age 59 1/2. Tax-free withdrawals are the biggest perk, but the Roth IRA offers ...
If you’re 60 years old with $1.2 million saved for retirement in a traditional IRA, you may be starting to think about required minimum distributions (RMDs) and the hefty annual tax bill they ...
But then accounting for taxes, your Roth withdrawal will be worth $1,600 with no taxes, while your traditional IRA withdrawal will be worth $1,800 after subtracting 10% in taxes from your balance.
However, after paying taxes, you’d likely end up with less in this example than you would have if you contributed to a Roth IRA. “Transitioning to Roth contributions at 60 presents a complex ...
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