Individual Retirement Accounts (IRA)
Does retirement seem soooo far away? Or are you staring it in the face? Wherever you are, one of the easiest and most common ways to save for retirement is with an Individual Retirement Account (IRA).
You have choices
There are two types of IRAs, Roth and Traditional. Each has advantages, depending on your personal situation. The main difference is how and when you get a tax break. We strongly recommend discussing your options with a tax advisor to help determine the best choice for you.
The IRS offers plenty of information about how these IRA options work. You can find details on the IRS website.
Traditional IRA
Contributions you make to a traditional IRA may be fully or partially deductible, depending on your filing status and income. Generally, the funds in your traditional IRA (including dividends) are not taxed until you withdraw money (a distribution) from your IRA.
Roth IRA
Contributions are made with after-tax funds and are not tax-deductible, but earnings and withdrawals are tax-free once requirements are met.
