There's no age limit for opening a Roth IRA, but there are income and contribution limits that investors should be aware of before funding one. Let's look at the pros and cons. Keep in mind that those who are 70 and a half years old or older and make contributions to a traditional IRA, a SIMPLE IRA, or an SEP IRA will continue to have to apply for an RMD, even if they are still working. If you have a significant amount of money in traditional IRAs, transferring some of that money into a gold IRA via a Transfer IRA to Gold transaction will not only help you avoid mandatory minimum distributions (RMDs), but it will also help your heirs keep more of the money you leave them by not requiring them to pay taxes on their traditional IRA that they inherited during their potentially higher income years. The distribution rules of a Roth IRA can also help you if you intend to leave your IRA to your heirs.
Even people with high incomes who can't directly fund a Roth IRA can use this strategy, also known as a clandestine Roth IRA. However, you can still contribute to a Roth IRA and make cumulative contributions to a Roth or traditional IRA, regardless of your age. The Roth IRA is one of those underused options, especially for older workers who work full and part time, who can use Roth contributions to relocate retirement savings to a more efficient tax instrument.
