Who is an IRA for?

An IRA can be a wise investment in anyone’s future. The type of IRA (traditional or Roth IRA) you choose should be based on your unique situation.

How does an IRA work?

IRAs can accrue interest based on the money you contribute to them. The more you contribute, the more money you may have in your retirement. The specific details and tax benefits of your IRA depend on if you choose a traditional or Roth IRA.

Why should I consider an IRA?

Everyone should have a strategy for their retirement. If you think you might be in a lower income bracket when you retire, you should consider a traditional IRA because you may be able to make tax-deductible contributions.* If you’re expecting to have a higher income in retirement, consider a Roth IRA and its tax-free growth benefit.

Consider a Rollover for your 401(k), pension, and more

In addition to traditional and Roth IRAs, you might also be eligible to roll over your retirement savings plan from a former employer. Alternatively, you can leave the money with your former employer’s plan, roll it over to a new employer’s plan, or cash out the account.  

Are your retirement assets sitting in the right place? Download the pdf to read more about your retirement planning options.

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What are the benefits of an IRA?

Traditional IRAs grow federal income tax-deferred, while Roth IRAs grow tax-free so the money you invest into your accounts today can lead to more money when you need it in retirement.

In 2019, you can contribute up to $6,000 per year into your IRA if you are under 50 years old. After age 50, you can contribute up to $7,000 per year, giving you the flexibility to decide how much money you invest each year. Plus, if you choose a traditional IRA your contributions may be tax deductible.

Depending on the terms of your specific IRA, you may be eligible to withdraw your contributions and earn interest tax-free. With a traditional IRA, some first-time purchases like a home or college expenses can also be withdrawn penalty-free.

Here are the types of IRAs we offer

A traditional IRA lets you defer taxes now and pay them when you withdraw the money for your retirement. If you suspect you’ll be in a lower tax bracket in retirement, a traditional IRA can save you money in the long run, and includes some special penalty-free withdrawals for certain purchases.

When you contribute to a Roth IRA you pay taxes on the money you contribute today, but benefit from letting those contributions grow tax-free. If you intend to contribute large sums to your retirement, a Roth IRA may help you save more money in the long run.

A Rollover IRA is an individual retirement account that can be used for funds from a 401(k), 403 (b), 457, or pension plan from a former employer.  Alternatively, you can leave the money with your former employer’s plan, roll it over to a new employer’s plan, or cash out the account.

Want some help figuring out the right IRA for your retirement?

Connect with local financial representatives who can help you figure things out.

Need more advice? Here are resources to help you learn and compare.

Disclaimer

*

Eligibility to deduct IRA contributions is affected by participation in a qualified plan and income level. Please consult your CPA and/or attorney for guidance.

All investments contain risk and may lose value. Diversification does not guarantee profit or protect against market loss.

Securities products and advisory services offered through Park Avenue Securities LLC (PAS), a registered broker-dealer and investment adviser.

PAS is a wholly owned subsidiary of Guardian and a member FINRASIPC

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