ST Alpha - "Does it make sense to have a standard IRA AND a Roth IRA if you don't know what your retirement income/wealth will be?" (Reading a Post)

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Does it make sense to have a standard IRA AND a Roth IRA if you don't know what your retirement income/wealth will be?

Posted by Bacon (aka redmond) Sep 22 '14, 17:20

I like that you don't have to drawn on your Roth like you do at a certain age like standard.

But, I like the tax savings now, and it looks like I won't be a top 10%er when I retire. So if I have less, doesn't it make sense to take the tax savings now?

My wife is putting her's into a Roth.

It's all guessing right? Guessing where you will be financially when you retire? The more you have, the more a Roth makes sense?

Responses:

Yep, I have to start drawing down my IRA next year - that's gonna hurt :/ - Meg Sep 22, 17:37
yeah its pretty much guessing -- nm - decline Sep 22, 17:31
I'm not nearly optimistic enough to think I'll be making more (or / the tax rate will be lower) at retirement - ty97 Sep 22, 17:30 1
- I am too. That's why I'm hedging :-) -- nm - spamlet Sep 22, 17:45
I think the total is $5,500 per year for any combination of the two. -- nm - James Bond (aka Igor) Sep 22, 17:30
fwiw, I'm probably going to be chucking some money into a Roth IRA at the end of the year - znufrii Sep 22, 17:28 3
- That is what I was thinking of doing. I get a 3% match on my standard, but thinking a Roth with my extra money? -- nm - Bacon Sep 22, 17:30 2
  - I don't really have a choice this year because of taxes - znufrii Sep 22, 17:39 1
    - I like it. Instead of adding to my standard, use my extra money that's already been taxed to go Roth. Hedge my bets. - Bacon Sep 22, 17:41
I'm finally to the point where I can get the match at work and do a Roth. - spamlet Sep 22, 17:26

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Does it make sense to have a standard IRA AND a Roth IRA if you don't know what your retirement income/wealth will be?

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