If you’re looking to supplement your retirement savings, an IRA can be a powerful tool to help you reach those goals.
What Is an IRA?
An IRA is an Individual Retirement Account that allows you to save money for retirement with certain tax advantages. Think of an IRA not as an investment product itself, but more like a box holding your chosen investments. Those investments may include mutual funds, stocks, bonds, annuities, Certificates of Deposits (CDs) or other financial products. Keep in mind that some restrictions and limitations on eligibility, contribution limits and access to fund apply.*
Types of IRAs
The two main types of IRAs are Traditional and Roth IRAs. Which type is right for you? The biggest thing that sets these two IRAs apart is when you pay taxes on the money you invest into the plan.
- Traditional IRA – Money contributed to a traditional IRA is taken out of your income pre-tax. You only pay taxes on these investments when you withdrawal money for life changing events like a new home or retirement. Money must be withdrawn by the time you reach 70 and a half years of age.
- Roth IRA – This is the exact opposite of a Traditional IRA. You pay taxes on the money you invest into the plan, but can withdraw money without incurring any tax penalties. Roth IRAs add a bit more flexibility, but they do come with some income limitations to consider. There are no age limits for keeping money in a Roth IRA.
Both of of these plans will generate income tax free as long as money stays in the account and it is correctly managed.
How an Experienced Personal Financial Representative Can Help
Interested in opening an IRA? Whether you’re interested in opening a new or rollover IRA, traditional or Roth, we have the experience to help you get started planning for your financial future.
Give us a call today to discuss the best ways to plane for your future, 615-356-4800.
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