An Individual Retirement Account (IRA) can be a valuable addition to your retirement savings plan. An IRA is an easy way to save for retirement. You get to choose the investments you want, your earnings can grow tax-deferred, and withdrawals you take at retirement may be tax-free.
A traditional IRA is a great way to build for your retirement while enjoying tax benefits. You will not pay tax on your earnings until you make withdrawals, and your contributions may be tax-deductible. This could be the right choice for you if you are under age 70, and have earned income.
Contributions to a Roth IRA are not tax-deductible—but your earnings grow tax-deferred, and withdrawals can be made tax-free. Unlike a traditional IRA, you do not have to make annual withdrawals at a certain age. A Roth IRA could be the right choice for you, if you expect to be in a higher tax bracket in the future.
Coverdell Education Savings Account
An CESA is an investment vehicle targeted to education expenses, not to retirement. A CESA allows you to make an annual non-deductible contribution. Your account will grow free of federal income taxes, and withdrawals from the account will be completely tax-free as well. You will need to meet certain requirements in the years you wish to make the contributions, and in the years you take withdrawals.
For more information on our IRA accounts please contact one of our offices.