Should I start investing in a Roth IRA at 70 years old?

I'll be 70.5 years old in December. I am told I'll have to take a certain amount out of my retirement plan. I don't want the money right now. What would be the best way to invest those funds? I am thinking about a Roth IRA.

Retirement, Investing, IRAs
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October 2017
60% of people found this answer helpful

This is a great question and congratulations on not needing your RMD each year.

You would not be able to utilize the monies from the RMD to directly fund a Roth IRA.  In order to make a Roth IRA contribution, you would need to have earned income.  Earned income is needed to make a contribution to a Roth IRA, so unless you have earned income this is a no.

You may want to consider converting some or all of your IRA to a Roth.  You would pay the taxes upon conversion but the monies would grow tax free going forward and you would not be required to take any RMD's on the funds in the Roth IRA.

Best of luck and be sure to consult with your advisory team to review what strategy would be best for you.

October 2017
October 2017
October 2017
October 2017