Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

A Roth IRA is a smart move for retirees

By Tali Yahalom, Money Magazine


(Money Magazine) -- Q: My husband is retired, and I work part-time. Can we contribute to a Roth IRA for him this year? -- Martha Chamberlain, Lanesville, Ind.

A: Even if just one spouse has a paycheck, you can both put $5,000 ($6,000 if you're 50 or older) in Roth IRAs every year as long as your modified adjusted gross income (for joint filers) is below $169,000.

However, you can't invest more than what you earn from your part-time job.

Opening a Roth is a smart move, even for retirees, says tax attorney Kaye Thomas of Fairmark.com.

Unlike with a traditional IRA, you never have to make withdrawals. And if you don't need the money, your heirs will enjoy tax-free growth too, though kids who inherit a Roth will have to withdraw the money eventually  To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.63%3.71%
15 yr fixed2.76%2.84%
5/1 ARM3.10%3.09%
30 yr refi3.63%3.74%
15 yr refi2.79%2.89%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 16,014.38 -12.67 -0.08%
Nasdaq 4,268.76 -14.99 -0.35%
S&P 500 1,852.21 -1.23 -0.07%
Treasuries 1.73 -0.01 -0.35%
Data as of 10:17pm ET
Company Price Change % Change
Bank of America Corp... 12.20 -0.07 -0.57%
Facebook Inc 99.54 -0.21 -0.21%
Pfizer Inc 29.10 0.54 1.89%
Ford Motor Co 11.35 -0.24 -2.07%
Microsoft Corp 49.28 -0.13 -0.26%
Data as of 4:01pm ET

Sections

Sports Authority faces looming deadline, possible bankruptcy filing after missing $20 million interest payment. More

President Obama's $4.15 trillion budget won't go anywhere this year with Republican lawmakers. But sometimes the proposals of outgoing presidents can influence future policy debates. Here are some of Obama's ideas from his last budget blueprint. More

STEM3 Academy was started specifically for students with autism, ADHD and Asperger's Syndrome. Its STEM-based curriculum is breaking through barriers. More

Looking to buy a home while carrying student debt? Here's the difference between making a low down payment and putting 20% down. More