Here is a very general breakdown: (Consult with your financial advisor/institution or attorney for all the rules).
If you have a Roth IRA or traditional IRA and you are over 50 you can contribute $6,500 per year into the IRA. Don’t miss the opportunity to contribute – up to the maximum.
Remember: If you reach 70 ½ in 2017…withdrawals from a traditional IRA are mandatory (or there will be penalties.) The financial institution where you have the IRA can assist you with specific questions and guidance.
There is no withdrawal requirement for Roth IRA, but again, consult with your financial institution for all the rules.
Special Note: Alimony is considered income. Not only do you have to claim it on your taxes, but since it is income – even if you are not working and receive alimony…alimony income can be used to fund an IRA. Again, check with your financial advisor/attorney in your specific situation.
Hint: Making automatic deposits into your IRA throughout the year can be a great way to ‘grow’ the IRA funds with less financial ‘pain.’
Final Note: IRA’s and other financial instruments are often a mainstay of Estate Planning. Make sure you know the beneficiary designations of each financial instrument and review them annually.
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