hashingopus[at]gmail.com wrote:

- quote -

There is one burning question which must first be answered.
Do either or both parents still have EARNED income?

That is necessary to make contributions to any IRA.

ChEAR$,
Harlan Lunsford, EA n LA

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hashingopus[at]gmail.com wrote:

- quote -

The question is this;
What tax bracket are they in now?
How long till they retire, and what bracket will they be in
then?

If they have high income, and no 401k, a regular IRA would
be a deduction for them, it would savethem their marginal
rate today and come out at a lower tax rate when they aren't
working.

An IRA isn't an investment, it's a wrapper. The IRA can be
with a bank or broker, but the investment is the choice of
Stocks vs Bonds, money market, CD, etc.

At their age, depending when they'll retire, the IRA can be
the perfect way to save a couple thousand dollars based on
the bracket difference, now till then.

JOE

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

My parents are ages 63 and 65. They have money to invest.
Would it be wise to put some of the money in a Roth IRA for
the 2005 tax year. I know the April 17 deadline date is
coming, so I am trying to get this answered so they do not
miss out. Are they too old to take advantage of benefits of
the Roth IRA? Should they look into another method of
investment considering their age?

thanks,

ncrunnner

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >