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Old 03-04-2015, 09:48 AM   #1
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Hello, at 56 yrs young and having a company sponsored pension plan, we make to much money to be able to get the tax benefits of a traditional Ira. My question is ami better off just putting my money into a Roth instead? Thanks Randy

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Old 03-04-2015, 10:09 AM   #2
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If eligible, a Roth IRA is almost always a great idea. For you and your spouse. If your income is too high, then consider the so-called Backdoor Roth IRA.

Otherwise, invest tax-efficiently in a taxable account.

But it is not clear what you are asking. A Roth IRA is ALWAYS better than a non-deductible traditional IRA. But sometimes you have to contribute to a non-deductible traditional IRA in order to convert that to a Roth IRA.

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Old 03-04-2015, 08:54 PM   #3
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My biggest regret (besides maybe not saving more) in retirement planning was not funding my Roth throughout the years. What the hell was I thinking? (I wasn't ). I only funded one for less than 10 years. I saved some but in after tax accounts. Absolutely no excuse for that since I have a pension in the 25% tax bracket. That is the point I am getting at. If your pension and SS are a decent amount, you will love the permanent tax free accumulation and withdrawal from a Roth.
Now I am paying 31% taxes on interest and 21% on capital gains in retirement when I could be paying 0% on a lot more of that.

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