From Yahoo Finance: 2025-03-29 08:30:00

Retirement involves managing saved money responsibly. With a Roth IRA, options include tax-free withdrawals, letting savings grow, transferring funds from other accounts, and possibly making contributions. Choice depends on individual circumstances, budget, income sources, and legacy desires.

Roth IRAs are funded with after-tax money, allowing tax-free withdrawals after age 59 ½ and five years of account ownership. No required minimum distributions (RMDs) are necessary, making them valuable for long-term growth and controlling future tax liabilities.

Roth IRAs do not require RMDs, providing flexibility in account management. Withdrawals over age 59 ½ and five years of ownership are tax-free. Consider discussing with a financial advisor the best strategies for tapping into retirement income sources, including Roth IRAs.

A strategy for spending retirement assets involves utilizing bank or brokerage accounts first, moving to tax-deferred accounts like traditional IRAs and 401(k)s, and finally withdrawing from Roth IRAs. Preserving tax-advantaged assets allows them to grow untaxed and can be efficient for estate planning.

Options for Roth IRAs in retirement include leaving money invested tax-free, withdrawing tax-free after specific criteria, and discussing income needs with a financial advisor. An emergency fund is recommended for unexpected expenses, and consider comparing savings account options for liquidity and growth potential.

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Read more: What’s the Best Way to Manage My Roth IRA in Retirement?