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Retirement Planning & IRAs
Your money. Your future.
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.
Take charge of your own retirement plan
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 $5,500.00; whichever is less. For individuals 50 years or older you may deposit up to $6,500.00. 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.
Types of IRAs
A traditional IRA will allow you to defer paying taxes on your growth until you start taking your distributions. Also, if you meet certain qualifications, your contribution to a traditional IRA is tax deductible.
Contributions are made with after-tax dollars, so there is no immediate tax benefit, but all earnings grow tax-free for the life of the account. This will provide you with considerable long-term tax advantages.
If you've changed jobs, retired, or have reached an age where your current plan allows, you have the ability to move your retirement funds out of the plan provided by your employer and "roll it over" into your own individual account. This provides flexibility to invest to your preferences, and our professional management and investment expertise can help guide you to the right solution for your future.
When a loved one passes away, their retirement assets can pass to their heirs in a variety of ways, including this one. Depending on your relationship to the departed, different rules will apply, but the tax-deferred status of the funds remains and we can help you understand the best way to invest these funds and ensure they provide for you as your loved one intended.