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

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.86%3.92%
15 yr fixed3.03%3.05%
5/1 ARM3.40%3.46%
30 yr refi3.94%3.98%
15 yr refi3.12%3.14%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 18,096.90 -106.47 -0.58%
Nasdaq 4,967.14 -12.76 -0.26%
S&P 500 2,098.53 -9.25 -0.44%
Treasuries 2.12 0.00 0.05%
Data as of 5:41pm ET
Company Price Change % Change
Bank of America Corp... 15.84 -0.15 -0.94%
Alcoa Inc 14.59 -0.59 -3.89%
Chesapeake Energy Co... 15.49 -0.71 -4.38%
Cisco Systems Inc 29.33 -0.21 -0.71%
Apple Inc 128.54 -0.82 -0.63%
Data as of 4:03pm ET

Sections

Sen. Bill Nelson, the top Democrat on the Senate Commerce Committee, is calling for a federal investigation into Lumber Liquidators. More

China's new business friends can be found in Latin America, a region America once dominated. More

Mark Zuckerberg gave out many pieces of career advice during his live Q&A Wednesday from Mobile World Congress in Barcelona. More