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Personal Finance and Investing

mobeau69

(11,591 posts)

1. Tax rates are based on income. After you retire you will

Reply to ret5hd (Original post)

Wed Feb 3, 2021, 02:31 PM

Feb 2021

Be in a lower bracket and depending on your SS and how much additional you’ll need to withdraw yearly, you may end up paying no income tax at all. You might want to look at a Roth IRA also.

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Question about IRA's: [View all] ret5hd Feb 2021 OP

Tax rates are based on income. After you retire you will mobeau69 Feb 2021 #1

But I am already in the lowest bracket... ret5hd Feb 2021 #2

With your assumptions, yes. There's not really any benefit to an IRA as far as I know. Salviati Feb 2021 #3

"a Roth IRA might have more advantages. You'd pay taxes on the $1000 now," progree Feb 2021 #7

The money you put into a Roth IRA is post tax money. Salviati Feb 2021 #8

I know. So? progree Feb 2021 #9

Not necessarily. You could withdraw it without paying any tax at all. mobeau69 Feb 2021 #5

Hides your capital gains zipplewrath Feb 2021 #4

Having some knowledge on this gibraltar72 Feb 2021 #6

Invest in a Roth while tax rates are low nt doc03 Feb 2021 #10

Or high, or in between. When one contributes to a Roth (compared to doing nothing), one is in progree Feb 2021 #12

I am 72 and have no idea where to park my RMDs from my traditional IRA. The banks and doc03 Feb 2021 #13

I'm 69, so am also not looking at a very long time frame for compounding my money! progree Feb 2021 #15

I am in 42% equites and 58% fixed income in my IRAs and Roth. I started withdrawing from my IRAs at doc03 Feb 2021 #17

The tax-deferral advantage of traditional IRAs progree Feb 2021 #11

Thank you! Exactly the kind of info l thought may be out there. ret5hd Feb 2021 #14

If you put that $1,000 in a Roth instead: progree Feb 2021 #16

If you're in a low tax bracket, the only reason I can think of to open a traditional IRA UrbScotty Feb 2021 #18