No. of Recommendations: 0
I am planning on waiting until 59 1/2 so that I can withdraw money from my IRA penalty free. I also plan on being retired at this time, so I should not have to pay income tax. Considering that my income tax rate would be 0% since I am not generating any income, shouldn't I contribute to a traditional IRA rather than a Roth IRA.

I think you're confused about the taxation of IRA distributions. Except for the return of previously-taxed nondeductible contributions, every penny distributed from a traditional IRA is taxed as ordinary income. Unless your total taxable income in retirement is going to be zero, you will be paying income tax on at least some of the distributions.

You can get more information in All About IRAs, accessible through the QuickFind dropdown menu at the upper right of this screen.

TMF ExRO
Phil Marti
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.