Is an Individual Retirement Account (IRA) right for you?

You may be able to save on your present taxes with a Traditional IRA, by deducting your qualified contributions from your taxable income.  The deductible amount depends on your martial status, your income and whether you’re an active participant in an employer sponsored plan as defined by the Internal Revenue Service.  A Traditional IRA allows you to defer taxes until you retire when you may be in a lower tax bracket.

With a Roth IRA, the contributions are made with after-tax assets so the earnings grow tax-deferred.  Thus, any distribution of those contribution amounts is made tax-free.  The earnings within a Roth IRA are also tax free if you have had the Roth IRA for at least five years AND you are age 59 1/2  or older, disabled, or a first-time home-buyer.

If you are retiring or changing employers, an IRA Rollover may make sense.  If you are anticipating withdrawing money from your employer’s retirement plan, you can avoid withdrawal penalties by transferring your assets into an IRA or another qualified plan.

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For more information about a new IRA or a rollover IRA, give us a call at (320) 974-8861 in Atwater, or (320) 382-6100 in Kandiyohi.