I am 72 yrs old, can I put $6500 in a Roth IRA and reduce my federal taxes this year 2015?
No you cannot, a Roth is not deductible | 04.11.16 @ 03:19
Unfortunately you cannot reduce your taxable income with a Roth IRA. Also, because you are over the age of 70, the Traditional IRA is not an option either.
| 04.12.16 @ 19:10
You must have earned income in order to make a contribution to a Roth or an IRA and second your contribution to a Roth is a not a deductible expense, it's an after tax contribution.
Any other questions feel free to call me, best of luck. | 04.12.16 @ 19:11
As long as you, or your spouse, has earned income equal to or greater than the amount of the contribution, you can add money to a Roth IRA at any age. As far as deductibility goes, a Roth IRA is not tax deductible, however you may be eligible for up to a $2000.00 savers credit if married, and up to a $1000.00 savers credit, if filing as single or head of household.
Regardless of the tax credit, it is still a great place to put your money as it grows tax free; if you established the Roth at least 5 years ago or more, you can access all of the money, tax and penalty free at any time.
If you just opened the Roth you can take your principle out at anytime, however the government would impose taxes on the earning if distributed within 5 years of establishing the account. Since you are over 59.5, regardless as to whether you just opened the account or have had it for many years, you would never be subject to the 10% penalty. | 04.12.16 @ 19:58