What’s your retirement plan?
An Individual Retirement Account (IRA) provides you with the freedom of a more secure future through tax-deductible savings. The two most popular retirement plans are Traditional IRAs and Roth IRAs.
A Traditional IRA offers a tax deferral on qualified contributions. For example, if you make $40,000 and you contribute $2,000, you may be able to claim a tax deduction for the $2,000 contribution. Taxes are then paid on earnings when you withdraw the money at retirement age.
A Roth IRA does not offer the “up front” savings of a Traditional IRA, but earnings on your Roth IRA contributions may be tax-free when you withdraw them at retirement.
Your tax advisor can offer expert guidance on which type of IRA best suits your particular needs based on your age and amount of annual contributions. However, if you’ve got general questions or need assistance in opening an IRA, give us a call or come see us and we’ll get you started.