Posted 1/8/2025 18:45 (#11047366 - in reply to #11047310) Subject: RE: IRA and taxes. Is it smart to fund it on a low tax or loss year?
Fund a traditional IRA on a high income year.It will serve as a deduction. Fund a Roth on a low income year with aftertax money,future dividends grow tax free.
On a Roth I think you have to wait 5 years before you can withdraw penalty free.
On a traditional you have to wait till your 59 1/2 to withdraw penalty free aside from the taxes you will pay.
Not sure on penalty for traditional ira maybe 10%???
IRA and taxes. Is it smart to fund it on a low tax or loss year?
