Future you will thank you: IRAs
What is an individual retirement account (IRA)?
IRAs are investment accounts that hold stocks, bonds, mutual funds, ETFs, and more. It's a type of tax-advantaged savings account intended to help you save for retirement.
There are two basic types of IRAs: Traditional and Roth. With a Traditional IRA, contributions are made pre-tax, so you can deduct contributions from your income tax, resulting in a lower tax liability. Earnings in a Traditional IRA grow tax-deferred until you withdraw them in retirement; at which time you pay tax on the amount you withdraw, just like regular earned income.1
If you need to, you can always withdraw Roth IRA contributions, (though not necessarily earnings) penalty-free.
With a Roth IRA, contributions are made after-tax (so taxes have already come out of the money you're contributing). Earnings in a Roth IRA grow tax-deferred, and you get to withdraw the money tax-free in retirement. Both IRAs have annual contribution limits and other rules, which an advisor can help you navigate.
How much do you need to retire the way you want?
How can IRAs
fit into your plan?
Contributing to an IRA can boost your retirement savings while giving you a nice tax benefit. Your IRA options will vary depending on things like income, access to a retirement plan at work, filing status, etc. Our advisors are here to talk to you about the right IRA for your situation.
Who are IRAs for?
Anyone who would like to set aside money for retirement. Because everyone's situation is different, an advisor can be invaluable in making the most of every dollar you save for retirement.
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1For both Traditional and Roth IRAs; distributions taken prior to age 59½ may be subject to a 10% IRS penalty. Like traditional IRAs, distributions from Roth IRAs could also be taxable if certain criteria are not met. All investments carry some level of risk including the potential loss of principal invested. Financial Representatives do not give legal or tax advice. Taxpayers should seek advice based on their particular circumstances from an independent tax advisor.