Retirement Planning

Retirement Planning
Retirement Planning



Which IRA is right for you?



Traditional IRA

An IRA may be a good choice if you are seeking a tax deduction now, your income is too high to be eligible for a Roth IRA, or expect to be in a lower tax bracket in retirement. 

A Traditional IRA is your opportunity to make tax-deferred and possibly tax-deductible contributions to your retirement savings. 

Traditional IRA Benefits include:

  • Tax-deferred growth potential.
  • The ability to deduct your contributions (if you participate in a plan at work, your eligibility is based on your income).
  • Accepts rollovers from employer-based plans (401K(k), 403(b), or 457 governmental plans).
  • Accepts transfers of savings from other.

Traditional IRA things to consider:

  • Withdrawals are taxable and included with your yearly income.
  • 10% IRS early withdrawal penalty on distributions taken before age 59 1/2 (some exceptions apply).
  • Required Minimum Distributions (RMDs) at age 72.



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Roth IRA

A Roth IRA may be a good choice if you are seeking tax-free withdrawals in retirement, want to avoid required minimum distributions beginning at age 70 1/2, or feel you will be in the same or a higher tax bracket in retirement. 

Roth IRAs offer you and opportunity to create tax-free income during retirement.

Roth Benefits include:

  • Tax-deferred growth and qualified distributions are tax- and penalty-free in retirement. Distributions are qualified after five years and age 59 1/2, or as a result of your death, disability, or if using the qualified first time home-buyer exception
  • The ability to withdraw your contributions at any time, without tax or penalty, if you need the money
  • No Required Minimum Distributions (RMDs) at age 70 1/2

Roth IRA Things to consider: 

  • Your Modified Adjusted Income (MAGI) determines your eligibility to contribute.
  • You're not able to deduct your contributions on your taxes, as they're made with after-tax savings.
  • Non-qualified distributions of earnings may be taxed and you may owe the 10% IRS tax penalty (some exceptions apply).



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