Should I be contributing to any IRA?

[civil4life]

I am single and make just under $100k with an AGI above the cut off limit for tax cuts on current tax returns.

I know the basics of a tIRA and Roth IRA, but trying to figure out what is best for me.  Am I correct in that after money has been saved for 5 years it can be withdrawn penalty free?  What about withdraw of what you make off the savings?

The majority of my retirement savings is in a 457 which I will have access to once I leave my job.  I anticipate retiring around 40, I am currently 34.  The earliest I would be able to touch my pension would be at age 60.  For FIRE my greatest concern is funding the 20-ish years before I can pull from my pension and after 62 my SS.  Between the pension and SS I would be able to live comfortably above even my comfortable retirement budget and would not need to touch my personal retirement accounts.

I will definitely be in a lower income bracket after FIRE.  From what I understand is that the best use of the Roth IRA is for someone that is in a lower income bracket now to contribute so when they pull from it later they will most likely be in a higher income bracket.  For me it would most likely be the opposite.

As I see it now, contributing to a tIRA does not help me with my current tax situation.  The only way I see it being beneficial to me for future withdraw would be to even lower my taxable income.

Which should I contribute too?  Or should I just focus on funding my own investment accounts?

[simonsez]

I am single and make just under $100k with an AGI above the cut off limit for tax cuts on current tax returns.

I know the basics of a tIRA and Roth IRA, but trying to figure out what is best for me.  Am I correct in that after money has been saved for 5 years it can be withdrawn penalty free?  What about withdraw of what you make off the savings?

As I see it now, contributing to a tIRA does not help me with my current tax situation.  The only way I see it being beneficial to me for future withdraw would be to even lower my taxable income.

What does the bolded part mean?  Are you talking about the tax deductible income limits for a tIRA?  Yes, you are above the income threshold for a tIRA.  Correct, it would not help you with your current tax situation.  It would not be beneficial for future withdrawals, either.  You would then pay taxes on both ends.

As for a Roth IRA, you can take out contributions penalty-free whenever and the contribution phaseout is higher than your current income (120k).  The earnings are a little trickier to withdraw if you are under 59.5.  See one of the stickied posts for more info on that.

[calpolyjohn]

There's no reason not to contribute to at least a Roth IRA in your situation, because you can withdraw the contributions (not gains) tax free anytime.  Plus you get the benefit of tax-free growth on dividends and capital gains.  You're right about not getting any tax benefit from a traditional IRA at your income level, so I'd go with a Roth.