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I am new to both IRA's and the Fool.

Welcome!

I have concentrated on getting out of debt and figured the 15% of my salary that went to our 403(b) would do for retirement. Perhaps that was a mistake, since TIAA-CREF hasn't done any better than the market for some time.

I am 52. I plan to work another 10-11 years and then retire. I want to open a deductible IRA to buy Income Investor (II) stocks and with the tax savings invest in II stocks like CTC that should not be in an IRA because of foreign withholding tax issues.


Good thinking about the foreign tax issue. There is a problem with your plan, though. Becasue of the 403(b) coverage deductibility of IRA contributions is phased out based on your Modified AGI. You can get the current numbers in IRS Publication 590, Chapter 1. I'll proceed assuming that you are eligible for deductible contributions in order to deal with the rest of your issues.

I plan to convert the traditional IRA to a Roth in the first year after I retire after my income goes down.

Since I will be over 59-1/2, I won't have to wait five tax years to withdraw from the Roth Conversion without penalty, will I? Hopefully, I won't need to, since I will have SS and the TIAA-CREF.


You are correct about the penalty.

Phil
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