No. of Recommendations: 4
I am now 66 years old. I did not open a Roth IRA when they first became available because I did not believe Congress could be so generous -- NEVER pay taxes on the accumulated earnings? No way those greedy SOBs would ever allow that. I was wrong.

During the period 1982 to 1986 I sent annual checks for two thousand dollars to a mutual fund for a spousal IRA for my wife who is seven years older than I am. That is a total of $10,000 in contributions. We started drawing when she got to the 70.5 mandatory age. She has drawn about $25 K and has about $75 K left. I got a tax deduction for the $10 K in contributions, but I would much rather have put in $10 K after tax and never pay taxes on the $90 K increase during the "compounding" period and not be required to make withdrawals.

I retired in 1999 and rolled the balance in my company 401(k) into a rollover IRA. I have been moving about $10 K per year from my traditional IRA to a Roth Conversion IRA in the hope that (1) the earnings from date of conversion to when I draw from it will be significant and never taxed (2) the taxes have to be paid someday so why not now and (3) there is no mandatory withdrawal requirement for Roth IRAs. The risk is that there will in fact be a loss, but life is full of risks.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.