| Individual Retirement Accounts |
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Whether you're just starting out or have been in the workplace for decades, if you haven't already started planning for retirement, the time to start is now. While earlier is better when it comes to planning your retirement, it's never too late to start – or to get serious about it. Social Security and a 401(k) won't be enough to support the kind of lifestyle most individuals would like to maintain in retirement and therefore an IRA may be the right choice for you! An IRA is an INDIVIDUAL RETIREMENT ACCOUNT. An IRA is a personal savings plan that provides income tax advantages to individuals saving money for retirement purposes. The two main types of IRA’s are the TRADITIONAL IRA and the ROTH IRA. TRADITIONAL IRA A TRADITIONAL IRA is primarily a tax-deferred individual savings plan. Contributions are made up to a specified limit with the contribution tax deductible up to the phase-out limitation. Money invested and earned in a traditional IRA is subject to income taxes at the time of withdrawal. Withdrawals can be made without penalty once the age of 59 1/2 is reached and withdrawals are required once the age of 70 1/2 is reached.
ROTH IRA A Roth IRA is an Individual Retirement Account that provides tax-free growth. As a result, it's the simplest, and potentially the most effective, sheltered account imaginable. Contributions are NOT tax-deductible when the funds are contributed, but the ROTH IRA Earnings accumulate tax-free and remain tax-free upon distribution.
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