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Investing/Strategies / Retirement Investing
|Subject: Re: help on ideas for retirement fund opportunit||Date: 9/19/2012 1:57 PM|
|Author: gdett2||Number: 70915 of 77568|
Something I do not understand in your post is the return you calculated.
$22K at 5.5% for 20 years will become $58K, not $28.
If you have income that satisfies the requirements for a traditional or Roth IRA, you can do that.
If you currently have no traditional IRAs and you are not eligible for a Roth contribution, you can make a non-deductible contribution to a trad IRA. Once it is there and booked, to a Roth conversion of the entire amount. You will need to pay income tax on any growth that occurs in the trad IRA, a couple dollars at most. The advantage to a Roth is huge later on when RMDs kick in at 70 1/2 for traditional IRAs.
Google "IRS Pub 590" for the regs on IRAs.
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