You’ve got Big Plans. Open an IRA Today.
IRAs are a great tool to help you reach your retirement savings goals. While these accounts may seem complicated at first, the basics are much easier to understand than you might think.
- What’s an IRA? An Individual Retirement Account or IRA is a type of savings account with tax benefits that can help you save for retirement. The specific tax benefit depends on the type of IRA you open.
- What are my options? There are two basic types of IRAs available:
- Traditional IRA – offers a tax deduction for the tax year in which the contribution was made.
- Roth IRA – lets you invest after-tax dollars and then take the contributions and earnings out tax-free when you retire.
- Who can open an IRA? Anyone with earned income (income from a job) or who has a spouse with earned income, can open and contribute to an IRA. IRAs do have income thresholds that control who can contribute to the account.
- When can I start? There’s no bad time to start contributing to an IRA but it’s great to start with your first job. When it comes to retirement savings, the longer your money is invested, the more time it has to compound and grow.
Talk to us today about opening up an IRA or click here to learn more.