Mr._Graybeard
Thinks s/he gets paid by the post
- Joined
- Apr 18, 2011
- Messages
- 2,989
When DW and I got married, I got to assess her opportunities for retirement savings and found her company plan to be very poor. As a result I convinced her to open a personal IRA and deposit $2000 a year. Since she already had a company plan, the IRA deposit was not tax deductible, or at least that was my understanding of the IRA law at the time. So, after 10 years she had a $23K IRA after interest and earnings. At that time the company improved its retirement plan dramatically, and we started using that plan for payroll deductions.
Fast-forward 20 more years, and the IRA account has $175k in it. There were no Roths at the time we opened it, but I'm thinking this account should work like a Roth. We paid taxes on the income before depositing it into the account.
I know we have some tax and accounting experts on the board. Experts, is my thinking straight?
Fast-forward 20 more years, and the IRA account has $175k in it. There were no Roths at the time we opened it, but I'm thinking this account should work like a Roth. We paid taxes on the income before depositing it into the account.
I know we have some tax and accounting experts on the board. Experts, is my thinking straight?