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Opening a Roth IRA after 60 means you don't have to worry about an early withdrawal penalty, but you'll have to wait five years to take out money tax-free. ... Drawbacks to Conversion After 60.
For example, Paul is 60 years old and, after years of diligent saving and successful investing, he’s amassed a large balance in his retirement accounts, including his traditional IRA.
But with 13 years of $120,000 Roth conversions already completed, the IRA balance requiring RMDs could be reduced to around $42,000 by age 73. Your first RMD would be just under $1,600.
Opening a Roth IRA after 60 means you don't have to worry about an early withdrawal penalty, but you'll have to wait five years to take out money tax-free.
Retirement savers who convert pre-tax retirement accounts such as IRAs to after-tax Roth IRAs after reaching age 60 can keep growing funds tax-free and then make withdrawals in retirement without ...
However, after paying taxes, you’d likely end up with less in this example than you would have if you contributed to a Roth IRA. “Transitioning to Roth contributions at 60 presents a complex ...
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