[USER]

I have about $1m spread over TSP and 401Ks. Will also get a pension (at least $5500/month). I max my TSP, but should I put any money into a Roth? (I have none yet.) What are the financial benefits to doing that?

I expect an annual retirement income of about $144K so taxes won’t drop dramatically (I think).

Currently make $183,500, plus a small non-taxable VA stipend. TIA.

(Widowed, one dependent, no survivor benefit, in case it matters to the answer.)

[Colleen]

There’s no required minimum distributions for Roth, so I would personally get on that. Don’t know your age, but you need to have had it open for 5 years to avoid taxes (although it’s penalty free) when you start taking required withdrawals at 59.5

[Chris]

I’m in the same boat. I’m contributing a little to some taxable accounts, but I’m coast fore for the most part. Don’t need to touch the investments. If you’re not working you can’t contribute to tax incentive account.

You can check also: My husband is 61 and planning on retiring in 4 1/2 yrs

[Jeff]

Why not? If ya don’t need the cash currently, a ROTH is a good way to have more money saved that won’t be taxed in retirement.

[Robert]

I think you might make too much for a Roth…I would get with a tax guy or a CPA.

[Kyle]

Tax diversification is the financial benefit. A person who has no Roth balances should immediately start one. If you have no tIRA…You may be in a position to do a huge back door. With RMDs, pension, stipend, and SS…there’s a good chance you will be paying a lot, if not more, in taxes at some point.

[Author]

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