2007-01-28 03:27:28 · 2 answers · asked by Jim D 1 in Business & Finance ➔ Taxes ➔ United States
No. They can increase your taxes if you take a sufficient dollar amount out during retirement though. This would be true for a normal IRA and not a Roth IRA.
A normal IRA is contributed to with pre tax dollars and its earnings are tax defferd.
A Roth IRA is contributed to with after tax dollars and its earning are tax free.
Whether a regular IRA affects you taxes largely depends on how much you contributed to it as well.
You are required to begin withdrawals by age 70 1/2 and are supposed to deplete the IRA by the time you die.
Of course if you have millions in the IRA, you will have to take millions out to do this. The result being you will pay taxes on it.
However, if you funded a Roth IRA, you could remove it all in retirement without any tax.
2007-01-28 03:38:34 · answer #1 · answered by A_Kansan 4 · 1⤊ 0⤋
No. SS retirement is not a needs-based entitlement. It's based on lifetime income and your age when you apply for benefits.
2007-01-28 11:39:13 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋