Last Minute IRA Tip: Don’t Let Divorce Derail Your Retirement

mom with daughter

Planning for a secure financial future can benefit all members of the family.

Here’s a last minute IRA tip that can help you stay on track for a comfortable retirement:

Many divorced people who are receiving alimony neglect to fund their IRAs every year.

That’s a mistake, because putting money aside each year into your Traditional or Roth IRA can help you keep your retirement savings on target, and ensure a comfortable lifestyle even after your alimony stops.

The IRS considers alimony as “earned income.” So if you receive alimony, and are otherwise eligible, you can contribute to a Traditional or Roth IRA, even if you have no other working income.

Which type of IRA is best? A traditional IRA can reduce your taxes right away. A Roth IRA gives you more tax-free income down the road. Ask your tax preparer or financial planner which is best for you.

About Mari Adam

Mari Adam, Certified Financial Planner™ has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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