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Unfortunately, thats not always possible.
People generally overlook HSAs as an excellent retirement savings tool, said Bill Ryze, chartered financial consultant withFiona.com.
First, your contributions are tax-deductible.
Second, your earnings grow tax-free, and third, withdrawals for qualified medical expenses are tax-free.
Besides, after 65, you might use the HSA funds for non-medical expenses without penalty.
However, they will be taxed as ordinary income.
Backdoor Roth IRA
A backdoor Roth IRA is not a different jot down of IRA.
With abackdoor Roth IRA, taxpayers who earn more than this can still contribute to a Roth IRA.
In a traditional Roth IRA conversion, you transfer tax-deductible contributions from a traditional IRA to a Roth IRA.
While a Roth conversion is taxable when you make it, your investment will grow tax-free.
A mega backdoor Roth IRA allows you to save more than the standard Roth IRA limit, said Ryze.
Once in the Roth IRA, your investments grow tax-free, and withdrawals in retirement are also tax-free.
Usually, an individual must have earned the income to contribute to an IRA.
The spousal IRA is an exception to this provision.
However, the working spouses income must equal or exceed thetotal IRA contributionsmade on behalf of both spouses.
Spousal IRAs are not joint accounts.
Each IRA is set up in the individuals name.
Spousal IRAs can be Roth IRAs or traditional IRAs.
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