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Author: Retcoastie Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1491  
Subject: Re: IRA Date: 7/22/2007 12:50 AM
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You didn't say where you retired from or the plan. Without that info I can only make a suggestion and it is based on: You are entitled to Social Security but not drawing Social Security at this time.

$2000 in an IRA is not going to grow much before you are eligible for SS. Once you begin drawing on that IRA amount it will deminish quickly. Instead of an IRA, start yourself a little company and give yourself a W-2 that would show a wage amount that would increase your taxes by $2000. Now instead of putting the $2000 in an IRA, your are paying additional taxes and depositing the $2000 with the government. The advantages are in figuring your SS payments. They are based on your last three years wages. Increasing your effective wages will make you monthly SS payment larger. The advantage is it lasts as long as you live. The balance does not deminish. Plus, your survior will get an increased SS based on your inflated wages as long as they live. If you and your spouse were planing on each putting in $2000 you would probably be better to inflate your last wages by $4000 worth of taxes and increasing the SS benefit more.

You will have to count your own beans, but SS will be around a lot longer than 4 to 7 years of IRA interest.

Good Luck
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