Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
I don't have any clear answers for you, but I'll be glad to muddy the water with a few legal clarifications and a bonus.

The law:

Anyone with $2,000 earned income can contribute $2,000 to an IRA. Your income level may preclude deducting those contributions or even Roth IRA contributions, but you can still make nondeductible traditional IRA contributions regardless of your AGI and retirement plan status.

Your 401(k) and 403(b) money is available to you without penalty if you're 55 when you retire. There are some intricacies involved, but the law allows it.

These funds are available to you at any age (when you quit working) if taken as a SEPP. Again, there are rules.

There's a lot more information available in All About IRAs, which is accessible through the Quick Find dropdown menu at the upper right of this screen.

The bonus:

There's nothing that says you have to spend cash just becuase you have it. I've read a lot of advice that retirees should not pay cash for real estate, but are better off saving their cash for other investments and emergencies, using a mortgage to finance their retirement homes.

TMF ExRO
Phil Marti
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement