Full deduction if you and your spouse, if married, are not covered2 by an employer-sponsored retirement plan (401(k), 403(b), Gov’t 457, SEP, and SIMPLE IRA), regardless of income.► NOT FDIC Insured ► No Bank Guarantee ► MAY Lose Value Traditional IRA deductibility limits The surviving spouse is the spouse remaining or deemed by law to remain alive after the IRA owner or plan participant’s death. Modified Adjusted Gross Income (MAGI) limits apply.ġ Spouse means the person lawfully married to the IRA owner or retirement plan participant. Roth contributions are allowed after the age of 70½ if you, or your spouse if filing jointly, have earned income.Roth contributions are not tax-deductible.Traditional IRA contributions cannot be made for the year you turn age 70½ or subsequent years.Contributions cannot be made in-kind (i.e., securities, property). Contributions must be made in cash, check, or money order.Traditional and Roth contributions are aggregated.You or your spouse,1 if filing jointly, must have earned income to make an IRA contribution.20 Traditional and Roth IRA contributions Maximum contribution (per individual)Ĭatch-up contribution (if age 50 or older) To make the best decision, you must consider such factors as your current and future tax rates, when you will need these funds and for what purpose, estimated account growth, and your access to any other retirement savings vehicles.
This allows you to diversify your assets and invest based on your risk tolerance, time frame, and personal situation.
and access investment guidance through a financial professional. Our firm offers you flexibility when saving for retirement because you can hold a wide variety of investments, such as stocks, bonds, mutual funds, annuities, etc. With a Roth IRA you make after-tax contributions, so distributions are tax-free in retirement. Since contributions are made with after-tax dollars, Roth IRA contributions are not tax deductible, regardless of income. Investment earnings are distributed tax-free in retirement, provided certain conditions are met. Roth IRA - offers tax-free growth potential. With a Traditional IRA your contributions may be taxdeductible and you’ll pay taxes when you make distributions in retirement. Deferring taxes allows for a potentially greater accumulation of wealth. Additionally, depending on your income, your contribution may be tax deductible. You pay no taxes on any investment earnings until you withdraw or “distribute” the money from your account, presumably in retirement. Traditional IRA - offers tax-deferred growth potential. When analyzing whether a Traditional or Roth IRA is right for you, one of the key decision points is when you want to pay income taxes on your savings. There are two main types of IRAs - Traditional and Roth - each with distinct advantages.
Even if you already participate in a retirement plan, such as a 401(k) at work, consider investing in an IRA to help supplement these savings and gain access to a potentially broader array of investments. Individual Retirement Accounts (IRAs) allow you to save for retirement and take advantage of tax benefits.