What to do with monies that cannot be invested in Roth IRAs when not working and at 63
What would be recommanded as tax-free investments with $20K or more as I can no longer invest into Roth IRAs since I am not working.
What would be recommanded as tax-free investments with $20K or more as I can no longer invest into Roth IRAs since I am not working.
Permalink Submitted by Alan - IRA critic on Mon, 2015-08-03 18:49
If you have no income or income under the total of your exemption and standard deduction, you can convert to a Roth IRA tax free, and you may want to increase conversions to include your 10% bracket as well. Do not miss that opportunity. As for the 20k, if this is money you will need for emergencies or living expenses due to lack of other income, you need to keep it to short term CDs, short term bond funds or interest paying savings accounts. You only need tax free investments when your tax rate in high and while not working I assume it will be low.
Permalink Submitted by Dorise Bitton on Mon, 2015-08-03 19:24
Thank you so much for your sound and great advice. I do however receive my dearly departed husband’s pension and am debating whether to start collecting my social security now at 62 then switch to his at 70, which obviously is higher than mine, or collect unemployment if I quality as I quit my job 2 years ago (for being bullied and sexually harrassed) and may not qualify since I worked a few months short of 5 years for a non-profit religious organization. Could you enlighten me on that? Thank you.
Permalink Submitted by Alan - IRA critic on Tue, 2015-08-04 03:45
Sorry, but this site is dedicated to IRAs and retirement plans. On matters of UC and SS benefits a more general site might be of more help. That said, you will not know if you can get a UC award unless you file, and the time to do that might be running out or might already have expired. I would look into that ASAP. Good luck to you.