new IRA

[frank]

I am 67 years old and have no Ira's. I know nothing about them. I have about 30k in earned income this year. it has pushed my taxable income higher than I like and was wondering if an Ira is a way to pass the tax burden on to later years. I don't expect earned income this year and was wondering If I opened an Ira with vanguard, say wellington and wellesley, could I deduct it this year and would I have access to this money without penalty, next year and ongoing? How do you open an Ira with vanguard? just over the phone or which method?

let me know. thanks

frank

 

[kaneohe]

Here's your homework Investing Basics: Traditional vs. Roth IRAs - Forbes

Your wording is confusing about which year you are talking about but I assume you had earned income of 30K last year (2013) and will have no earned income this year (2014). If true, you can contribute to an IRA before 4/15/2014 and create a 2013 IRA. Depending on your marital status, whether you had acess to a retirement plan or not, and your income, you may be able to deduct part of all of your contribution to a traditional IRA. Since you are over 59.5 yo,
you can withdraw funds w/o a penalty but will have to pay taxes on any withdrawal.

You can call VG and ask about how to open an account. I did it by mail so don't now about via the phone.