Individual Retirement Accounts (IRA)
An Individual Retirement Account (IRA) is an account that allows you to save for your retirement and take advantage of the tax benefits. We will help you understand IRAs and their tax advantages, and decide which may be right for you.
In a Traditional IRA, you make contributions with money you may be able to deduct on your tax return and any earnings can potentially grow tax-deferred until you withdraw them in retirement. Many retirees also find themselves in a lower tax bracket than they were in pre-retirement, so the tax-deferral means the money may be taxed at a lower rate.
With a Roth IRA, you make contributions with money you’ve already paid taxes on (after-tax) and your money may potentially grow tax-free, with tax-free withdrawals in retirement, provided that certain conditions are met.
An inherited IRA is created when someone inherits an IRA after the death of the original owner. You’ll get all the tax advantages of the IRA, as well as the ability to withdraw funds according to a set schedule over your lifetime.
Have an old employer-sponsored plan, such as a 401(k) or 403(b)? You may want to consider a Rollover IRA. This is an account in which you roll over your old employer-sponsored plan(s) into an IRA, without paying taxes or withdrawal penalties at the time of transfer. Consolidating multiple employer-sponsored retirement plan accounts into a single Rollover IRA can make it easier to allocate and monitor your retirement assets.