[GreenKeys] OT: RMDs

[hwhall at compuserve.com]

The Roth IRA is kinda like a traditional IRA turned upside down. You go ahead and pay taxes on what is deposited in the retirement plan & then don't have to pay taxes when you're retired and withdrawing from the plan. Intended for people who believe their taxes would increase when they are older instead of being lower.
WayneWB4OGM

-----Original Message-----
From: Jim Haynes <jhhaynes at earthlink.net>
To: w9ddd at tapr.org <w9ddd at tapr.org>
Cc: greenkeys <greenkeys at mailman.qth.net>
Sent: Mon, Apr 6, 2020 9:32 pm
Subject: Re: [GreenKeys] OT: RMDs

Or MRDs (Minimum Required Distributions)  There are several schemes in the
U.S. with the general idea that you put income aside untaxed with the
expectation of taking it out and being taxed on it when you are retired
and your income is lower and your tax rate is lower.

IRA - Individual Retirement Account - you put money into an investment
and then at a certain age you are no longer allowed to put money into it,
and still later you have to start taking money out of it and paying
taxes on it.  There's also the thing called a Roth IRA and I don't
remember how that works.

Then there are deferred compensation plans where your employer takes the
money out of your pay and invests it and again you have to start taking
money out of it and paying taxes on it after age 70.5.


     ---

     "Ya can argue all ya wanna, but it's dif'rent than it was."
     "No it ain't! No it ain't!  But ya gotta know the territory."
         Meredith Willson, The Music Man
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