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agent6313 04-06-2017 12:12 AM

Roth or not?
I put away the maximum (59,000) yearly. I get a full tax deduction for this. I now have an option of using a Roth. I have a small amount in Roths now. Now I am 62 years old. At this age, which is more beneficial going forward - putting all the money in a Roth each year, or take the tax deduction instead?

FrankByMonster 08-24-2017 06:47 AM

Re: Roth or not?
I'd take Roth

Boatswain2PA 10-23-2017 10:10 AM

Re: Roth or not?
You put away $59K a year? Into what? That exceeds the 401K limits, AND the SEP-IRA limits? I assume you mean you are putting it into savings?

Regarding a ROTH: If you are able to "put away $59K a year", you may very likely earn too much to qualify for a ROTH (unless what you mean by you "now have the option for a ROTH" is that your income is coming down enough so that you could now contribute to one).

Generally 62 is too old for it to make sense putting money into a ROTH, however if you are very healthy and expect to live another 30 years, AND have plenty of other retirement resources to draw on while he ROTH continues to grow, then it may be worth it for you.

But, given that you are apparently in a very high tax bracket, and given your age, it probably makes more sense to put that money into a tax deferred account.

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