IRA for old guy

[tvz]

So for a 60-year-old who is basically retired w/ a modest pension, who works part-time and, combined w/ his wife earns about $15,000/year, am I correct in understanding that,
1) We can each contribute $5000/ to our Roth IRAs, plus $1000 catch-up contributions
2) If needed, we can withdraw from our IRAs at any time
3) There's really no reason not to do this

THANKS,
-TVZ

[kork13]

1) Correct.
2) Mostly correct. **See below
3) Absolutely correct.

The only proviso in regards to Roth withdrawals is that the account must be at least 5 years old in order to take out earnings (otherwise they're taxed as ordinary income). However, your contributions can be withdrawn at any time for any reason with no penalty or taxes.

Otherwise, assuming you meet the 5-yr requirement, I'd say that's a great plan for any money you don't actively need. Even if it grows for just a few years before withdrawal, that's still a few years of tax-free earnings.

[tvz]

Thanks Kork13. That's very helpful.
-TVZ