Save for your retirement and reduce your tax bill.
Traditional IRA
Contributions to a traditional IRA are tax-deductible. Your earnings grow tax-deferred, so you will not pay income taxes on your investment earnings until you make withdrawals. Both deductible contributions and earnings are then taxed at your regular income tax rate when the money is withdrawn.
Benefits:
- Allows contributions (as long as you have earned income) up to age 70½
- Requires distributions to begin by age 70½
- Provides a current tax deduction for eligible participants
- Allows investment earnings to grow tax-deferred
Roth IRA
Contributions to a Roth IRA are never tax-deductible, so they will always be tax-free upon distribution. Your earnings grow tax-deferred, so you will not pay income taxes on your investment earnings until you make withdrawals. If you take a “qualified distribution,” your earnings are tax-free.
Benefits:
- Permits contributions as long as you have earned income
- Does not require distributions to begin by a certain age
- Can be passed along to heirs
- Allows investment earnings to grow tax-deferred
If you would like to manage your IRA, please visit Retirement Central.