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I recently retired and was rehired making the same salary (88K) and my retirement check comes monthly at 6K. Can I invest in IRA or Roth IRA or is my income too high? Do I even want to deal with tax issues with these things? My inclination is to just stash the cash for now. What say you fool?
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I recently retired and was rehired making the same salary (88K) and my retirement check comes monthly at 6K. Can I invest in IRA or Roth IRA or is my income too high? Do I even want to deal with tax issues with these things? My inclination is to just stash the cash for now. What say you fool?

IIRC, you can contribute to a Roth IRA completely if your AGI is underneath 95k, so you definitely qualify for that.

For a traditional IRA, it depends on if a 401(k) or similar is offered by your company as to whether it is tax deductible or not.

Either way, check out IRS Publication 590 for everything you've ever wanted to know about IRAs.

-Agg97
who suggests putting the money in the Roth IRA
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If paperwork is your priority, go with the Roth- if you "stash the cash" you'll have to report your cap gains, interest, and dividends at tax time for years to come. With the Roth, you'll never have to worry about that stuff.

No to mention the fact that you'll save a bundle in taxes over the long term.

Nick
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I recently retired and was rehired making the same salary (88K) and my retirement check comes monthly at 6K. Can I invest in IRA or Roth IRA or is my income too high? Do I even want to deal with tax issues with these things? My inclination is to just stash the cash for now. What say you fool?

IIRC, you can contribute to a Roth IRA completely if your AGI is underneath 95k, so you definitely qualify for that.


Maybe I'm misunderstanding the original post but 88K +(6K*12) = 160K by my calculations. That's out of range for Roth IRA contributions - even if married.

rad
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do you have to start taking distributions from your retirement account? what is your retirement account? a pension? a 401k? something else? if you are required to take distributions, what is the minimum you can take? are you also getting social security? (side question, does social security could toward AGI?)

i think your best bet would be to forego or delay payment from your previous account and start up a Roth (preferred) or regular IRA.

best,
--morgan
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Maybe I'm misunderstanding the original post but 88K +(6K*12) = 160K by my calculations. That's out of range for Roth IRA contributions - even if married.

I read it to be 88K, or roughly 6K per month take-home. You're entirely correct if it's 160K.

-Agg97
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