By deferring taxes, your retirement income can grow faster, allowing for a greater accumulation of wealth and a more secure future. If you are not enrolled in a plan at work, you generally can deduct your Traditional IRA contributions, regardless of your income. Regardless of your ability to deduct your contributions, your earnings will still grow tax-deferred. Contributions cannot be made beginning in the year you attain age 70 and withdrawals must begin at that time. The most attractive feature of the Roth IRA is the potential to take tax-free withdrawals of contributions and earnings.
Contributions are always non-deductible.
If you or your spouse have earned income, contributions can be made after age 70 . You are not required to take withdrawals during your lifetime. Your beneficiary must start withdrawals upon your death. Converting your existing IRAs to a Roth IRA can help you maximize your tax-free wealth building strategy. You may be one of the millions of Americans who change jobs or retire each year and receive a distribution from your employer's retirement plan.