An IRA is an Individual Retirement Account. There are generally two types of IRAs: the Traditional IRA and the Roth IRA. Each offers its own unique advantages, as well as certain restrictions, while both offer a broad array of investment vehicles (Certificate of Deposit, mutual funds, etc.).
Talk to one of our Financial Consultants to confirm the amount allowed in annual contributions (may vary based on your age).
Both Traditional and Roth IRAs also provide you with some flexibility should you need to dip into your savings to fund specified expenses, such as buying your first home or paying for your children’s education.
Traditional IRAs* often allow tax-deductible contributions and offer tax-deferred earnings. This means that you do not need to pay taxes on the money you contribute until you withdraw it from the account. Additionally, you don’t pay taxes on the money the investment earns until you make a withdrawal.
Taxes are paid on the money you contribute to a Roth IRA, so that earnings can be withdrawn tax-free after age 59½, provided the account has been open at least five years.
Which IRA is Right for You?
To learn more about traditional and Roth IRAs and which one might be right for your retirement planning, we invite you to meet our Financial Consultants and schedule a free consultation. You can also call 410-558-4200. It’s never too soon or too late to start planning and saving for your retirement.
*A Roth IRA must be open at least five years prior to withdrawals being taken, and normal tax rates will apply for withdrawals from a Traditional IRA. Unless certain criteria are met, IRS penalties (usually 10%) may apply on withdrawals taken from Traditional IRA accounts prior to age 59½, in addition to income taxes.