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How Old Is Too Old to Benefit from a Roth IRA?

August 10, 2019

From the Kiplinger website

A recent pension reform proposal made it through the House, and a similar bill is working its way through the Senate. A provision in the SECURE Act removes the 70½ age limit cap on traditional IRA contributions. If this provision becomes law, it will give older workers another option for saving on a tax- advantaged basis.

The proposal reminded me that even without a law change, there are other ways to save on a tax-advantaged basis, as only traditional IRAs currently have an age cap. Other options, like Roth IRAs and employer sponsored retirement plans, are available to older workers, regardless of age.

The pension reform proposal makes this a good time to focus on an underutilized and important savings opportunity for older workers, the Roth IRA. Let’s look at the details.

From → Finance

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