An Individual Retirement Account (IRA) is an investment account designed to provide you a tax-advantaged way to save for retirement. A Wealth Management Specialist will help you determine when to consider an IRA, explain different types of IRAs and help you choose an appropriate investment strategy.
Traditional and Roth IRAs
The primary difference between a Traditional IRA and Roth IRA is the type of tax benefit each delivers.
- No deduction for contributions
- Tax-free investment earnings if you follow all the rules
- Contributions may be tax-deductible under certain circumstances
- You can contribute up to $6,000 in 2020, and if you’re age 50 or older, you can contribute up to $7,000
A Rollover IRA, or a retirement savings account established for individuals, allows you to move, or rollover, assets from an administered retirement plan, typically from an employer. You can benefit from the tax-deferred growth potential of such a Rollover IRA if you are changing jobs, retiring or receiving a distribution from your employer’s retirement plan.