A self-directed IRA is a type of traditional or Roth IRA, meaning it allows you to save for retirement on a tax-advantaged basis and has a contribution limit in 2023 of $6,500, or $7,500 for people age 50 and older, says Lori Gross, financial and investment advisor at Outlook Financial Center.
"Ninety (years) covers the vast majority of people,” Rob Burnette, chief executive, financial adviser and professional tax preparer at Outlook Financial Center in Troy, Ohio, said.
“Retirement income is normally taxed as ordinary income at the federal level, just like when you are working and receiving a W-2,” says Rob Burnette, CEO, financial advisor and professional tax preparer at Outlook Financial Center.
“Social Security recipients are going to lose a portion of their increase to taxes, and some will be paying taxes on their benefits for the first time,” says Rob Burnette, CEO and financial advisor at Outlook Financial Center in Troy, Ohio.
Wealthier investors, however, can still access these accounts indirectly through a backdoor Roth IRA. "This strategy gives a workaround for the Roth IRA income restrictions," says Rob Burnette, a financial adviser and tax preparer at Outlook Financial Center in Troy, Ohio.
“If you’ve got the availability to put more into your retirement savings, then by all means,” says Lori Gross, a financial and investment advisor at Outlook Financial Center in Troy, Ohio.