Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
IRA and Social Security question
Old 10-03-2006, 09:44 PM   #1
Full time employment: Posting here.
UncleHoney's Avatar
 
Join Date: Aug 2006
Location: Columbus
Posts: 769
IRA and Social Security question

I'm still working this year and DW isn't, but she is collecting Social Security. Is there any reason that she couldn't buy an IRA if she is less than the 70 1/2 age limit? I haven't found anything that says she wouldn't be eligible.

Ron
__________________

__________________
100% retired and working hard at it.
UncleHoney is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: IRA and Social Security question
Old 10-03-2006, 09:50 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Feb 2006
Posts: 1,183
Re: IRA and Social Security question

She can contribute to a spousal IRA.
__________________

__________________
crazy connie is offline   Reply With Quote
Re: IRA and Social Security question
Old 10-03-2006, 09:55 PM   #3
Thinks s/he gets paid by the post
retire@40's Avatar
 
Join Date: Feb 2004
Posts: 2,670
Re: IRA and Social Security question

If the tax benefit of the contributions outweighs the expected tax consequences of the distributions, then it's a go.

Your CPA should be able to tell you what kind of IRA and the maximum she and you could contribute, based on the information on your tax return for the year.

If you are not sure, you could always wait until after the end of the current year and make those 2006 contributions before April 15, 2007.
__________________
No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
retire@40 is offline   Reply With Quote
Re: IRA and Social Security question
Old 10-03-2006, 10:13 PM   #4
Full time employment: Posting here.
UncleHoney's Avatar
 
Join Date: Aug 2006
Location: Columbus
Posts: 769
Re: IRA and Social Security question

With the SS distributions, the tax damages this year are going to be sizeable. But the plan is to offset the extra income by maxing out my 401K and adding the IRAs. Plus it will give me a chance to move some CDs from the taxable side to tax defered.



__________________
100% retired and working hard at it.
UncleHoney is offline   Reply With Quote
Re: IRA and Social Security question
Old 10-05-2006, 02:29 PM   #5
Recycles dryer sheets
 
Join Date: Oct 2005
Posts: 150
Re: IRA and Social Security question

You need to look at which type of IRA you want to invest in..Roth or "regular"...Could be that Roth is much better and you wouldn't have to take RMDs in a couple of years. If you do take it later as Roth, it won't impact the taxation of your SS.
__________________
New Thinking is offline   Reply With Quote
Reply

Tags
ira, social security


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
500 search phrases for 2006 dory36 Other topics 2 01-16-2007 08:00 AM
IRA and Social Security tomz FIRE and Money 2 06-14-2006 10:31 AM
Social Security and IRA's jimhcom FIRE and Money 4 07-12-2005 12:20 AM
Bogle on Social Security Reform Eagle43 FIRE and Money 22 02-26-2005 08:18 PM

 

 
All times are GMT -6. The time now is 02:26 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.