Home Articles Age 70 or 71? Where you should put your retirement savings now

Age 70 or 71? Where you should put your retirement savings now

Roth IRAs are retirement accounts that are not tax-deferred like traditional IRAs or 401ks. The money put into Roths is post-tax money.

For this reason, Roth IRAs do not have RMDs. You are allowed to leave the money, as well as the growth on the money, in these accounts for as long as you want because the government has already collected the tax.

If you are one of these people who need somewhere to put your retirement savings at age 70 and 71, Roths are a great option.

When you actually start distributing the money from a Roth account, it creates a stream of tax-free income, allowing you the opportunity to create a tax-free retirement.

You can also convert any money you have in a traditional IRA into a Roth. Though you have to pay the taxes when doing a Roth conversion, this is a great strategy for those preparing for retirement and wanting to make sure their IRA and RMDs do not create a tax bomb down the road.

The Roth IRA strategy actually works for people of any age. Even if you are significantly younger than age 70 and 71, it could be really advantageous to look into Roth conversions as well as contributions to make your retirement more tax efficient.

If you make too much money to contribute to a Roth IRA, there is the possibility of a Backdoor Roth (contact Cardinal for more info on this).

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Finishing Well
Finishing Wellhttps://www.cardinalguide.com/finishing-well/
Retirement planning involves a lot more than just managing your money. This show is the complete guide to planning for and living in retirement, helping families finish well. Host Hans Scheil will discuss a new topic every week ranging from Social Security and Medicare to IRAs and taxes. Follow along each week by downloading the corresponding chapters below for free! New episodes air: Finishing Well Schedule on Truth Network
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