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Thinking about “stashing” some
money away for retirement?
An Individual Retirement Account (IRA) is an excellent way to grow
that money! IRA’s allow your contributions to grow tax-deferred
until they are withdrawn. That means you do not pay taxes on the
earnings until you withdraw them from your IRA.
There are two types of IRA’s, each with their own benefits
to fit your financial needs.
- The Traditional IRA offers the possibility
of a tax deduction for qualified contributors.
- The Roth IRA does not offer the possibility
of a tax deduction up-front; however, earnings on a Roth IRA may
be completely tax-free provided certain qualifications are met
for withdrawals.
Both IRA types do require that you must have earned income in
order to contribute to an IRA. Not working but your spouse is? That’s
okay. If you are married, filing a joint tax return, and your spouse
has earned income, you may still qualify to contribute to an IRA.
For tax years 2009 and 2010, the maximum allowable contribution
to an IRA for each tax year is $5,000, or the equivalent of your
earned income for that year, whichever is less. For individuals
age 50 and up, you qualify to contribute an additional $1,000, raising
your maximum contribution to $6,000 per year.
Haven’t made your 2009 contribution yet?
That’s okay. The IRS allows you until April 15, 2010 to make
your contribution for 2009.
Left a job recently? Did you have a 401(k) with
your old job? What happened to it? Did you know that you can move
that old 401(k) into a Traditional IRA? If you would like more information
on how to do this, come on in and we’ll be happy to help!
To determine if you qualify to contribute to an IRA, how much you
can contribute, and which type of IRA is best for you, we strongly
suggest you seek the assistance of a skilled, competent tax advisor
because each individual tax situation is different. When you are
ready to open your IRA, stop by one of our locations and one of
our many IRA specialists will be glad to help you start growing
your nest egg today!
  
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