Take charge of your retirement plan
Whether retirement is in sight or you're just getting started with the planning, adding an IRA to your strategy can make the difference in how comfortable you are when you retire. Start saving now outside of your 401(k) with an IRA to dramatically increase your income.
What is an IRA?
An IRA, or an Individual Retirement Account, is essentially a savings account with big tax breaks, which makes it an ideal way to save for your retirement. Unlike a 401(k) that is provided by your company, an IRA is an account that you open up on your own.
IRAs are often more ideal than a regular savings or Money Market account because they enjoy the benefit of tax-deferred interest. This allows your retirement savings to grow faster in an IRA than they would in a similar taxable account because you can earn tax-deferred interest on your deposits in an IRA - right up to the time you begin withdrawing funds.
See below to learn more about the different types of IRAs!
Your money, your future
Unlike most other pension plans, you control your IRA investments. In fact, your IRA is 100 percent yours from the day you open it.
You may deposit any amount up to 100 percent of your compensation or $6,000 per year - whichever is less. For individuals 50 years or older, you may deposit up to $7,000 per year. Compensation is the salary or wages you receive as an employee. If you are self-employed, compensation is your net income for personal services performed for the business. Passive income such as interest, dividends and rental income is not considered compensation for purposes of funding an IRA.