401k Recovery Advice

Supplementing Your Retirement Income With IRAs

Investopedia |

In Brief...

Many Americans depend on to some extent on Social Security to finance their retirement years and to provide their beneficiaries with financial support; however, according to projections made by the Trustees of the Social Security Fund, the fund assets will begin to be depleted by 2024 and are projected to be exhausted in 2037. If you are married and not currently employed, your spouse may fund your Traditional IRA on your behalf, provided you file a joint income-tax return. In addition to funding your Traditional IRA with annual contributions, you may also fund it with assets from your employer-sponsored retirement plan, such as qualified plans, 403(b), 457(b) plans, SEP and SIMPLE IRA plans. Roth IRAs The Roth IRA - sometimes referred to as the back-ended IRA because the tax benefits are not received up front like they sometimes are with a Traditional IRA - is similar to a Traditional IRA in many respects. With a Traditional IRA, the tax benefit is usually taken when the contribution is made to the IRA. Should you decide to recharacterize your IRA contribution, you must contact your IRA custodian to determine its documentation and procedural requirements.

Read the entire article at Investopedia...

Related Topics