I have an IRA that I have not contributed to in many years. Should I just leave it alone till I retire?
I'm 40 now and it has less than $1,000 in it.
Answers | 2
If you mean by "an IRA" an IRA *account* but you have other IRA accounts, nothing stopping you from rolling that money into another IRA account and doing some consolidating.
Some remaining options for that IRA account (aside from leaving it alone and/or consolidating it into other existing IRA accounts) include (a) cashing it out -- which likely will mean paying taxes and penalties, as well as depleting, a little, your future retirement stash; and (b) performing a Roth conversion -- which may also mean paying some taxes now -- which would allow the money to grow for many years to come -- tax *free* -- and also potentially allow you to get at the amount converted, if you need to, without further penalties, in as soon as 5 years.
Certainly, you can leave that $1K IRA alone. I'm more concerned about why you are not contributing to it? Are you contributing to something else?
$1K at a 15% CAGR will become $8k in 20 yrs (you will be 60 then). Would this be important to you? You could make this happen by investing it efficiently.
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