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Message
Roth IRA - Good to stash a small inheritance?
Posted on 11/25/15 at 10:13 am
Posted on 11/25/15 at 10:13 am
I know, I'm too lazy to do the upfront legwork but I'm still going to ask. My SIL is coming into a small inheritance - say $130K. She is over 50 and has very little income - less than $50k annually.
She would like to put some of her money into a retirement vehicle. She has a small Vanguard IRA now. Is a ROTH IRA a good choice for her? Is she limited to the $6,500 initial (and subsequent) contribution?
She would like to put some of her money into a retirement vehicle. She has a small Vanguard IRA now. Is a ROTH IRA a good choice for her? Is she limited to the $6,500 initial (and subsequent) contribution?
3
Posted on 11/25/15 at 10:30 am to ynlvr
quote:No, because
Is a ROTH IRA a good choice for her?
quote:Yes. Plus if she has a regular IRA she's limited to 6,500 minus whatever she puts in that
Is she limited to the $6,500 initial (and subsequent) contribution?
Posted on 11/25/15 at 10:59 am to Iosh
Thanks, Iosh.
She has not been contributing to her IRA for a few years. So, it sounds like since this inheritance money is not taxable, the incremental $6,500 contribution may still be put to better use in the Roth so as not to worry about future taxes on gains. Am I thinking correctly?
She has not been contributing to her IRA for a few years. So, it sounds like since this inheritance money is not taxable, the incremental $6,500 contribution may still be put to better use in the Roth so as not to worry about future taxes on gains. Am I thinking correctly?
Posted on 11/25/15 at 11:05 am to ynlvr
Put $13,000 in today, then put A big chunk into a short duration bond index that will fund the Roth each year for the coming years.
Posted on 11/25/15 at 11:34 am to ynlvr
No.
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