Traditional IRA – The traditional IRA allows you to defer taxes on the earnings on your contributions until they are withdrawn. Also, certain contributions are tax deductible in the tax year for which you make them.
Eligibility: You are eligible to establish a traditional IRA if you are younger than age 70 ½ for the entire tax year and you or your spouse has compensation.
Roth IRA – The Roth IRA allows only nondeductible contributions and features tax-free withdrawals* for certain distribution reasons after a five-year holding period. Since Roth IRA contributions are nondeductible and taxed in the year they are earned, if you expect to be in a higher tax bracket when you retire, you may benefit more from a Roth IRA than from a traditional IRA. Eligibility: You are eligible to establish a Roth IRA if you or your spouse have compensation and your modified adjusted gross income (MAGI) does not exceed certain prescribed limits.
Contact us today for assistance with setting up your new IRA account.
*Please consult a tax advisor
