Whether retirement is in your near future or still years away, it's always the right time to plan for retirement. A Traditional IRA provides you with significant up-front tax advantages. Less money is initially taken out for taxes allowing your savings to compound. The earnings you accumulate are tax-deferred, contributions are tax deductible if you qualify (consult with your tax advisor), and the amount you can contribute may increase from year to year. Take advantage of the Traditional IRA benefits:
- Earn tax-deferred, compound dividend on your money
- IRA certificates with competitive rates
- Begin penalty-free withdrawals as early as age 59½
- Continue tax-deferred deposits as late as age 70½
- Take penalty-free early distributions for education or a first-time home purchase (you must still pay taxes on the money you withdraw)
Who can contribute?
- Anyone under age 70 ½ who has income from compensation or who is filing jointly with a spouse who earns compensation.
- Anyone who has received a distribution from a qualified retirement plan and decides to roll over the proceeds of that plan into an IRA.
What are the tax advantages?
- Your earnings grow tax-deferred until you withdraw the funds.
- Contributions may be tax-deductible (consult with your tax advisor)