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IRA and Roth IRA
What is an IRA (Individual Retirement Account)?
It is a stand-alone account in which you can save money every year. At tax time, you reduce your taxable income by the amount you contributed to your IRA. Thus, it saves you income taxes. You may invest this money in stocks, mutual funds and annuities. All the growth is tax-deferred until you are ready to withdraw it as income at some future time, hopefully in your retirement years. You pay taxes on this income when you withdraw.
If you have a 401(k) or 457 Plan at your job, at retirement or when you leave your employer, you may roll-over your account to an IRA.
What is a Roth IRA?
In some ways, a Roth IRA is similar to a traditional IRA described above with some differences. In a traditional IRA, you seek a deduction on your taxes now and pay them later at retirement. With a Roth IRA, you pay taxes now and enjoy a tax-free income for life when you retire.
Which type of IRA is better for you?
Which one you should have? Maybe Roth IRA now and Traditional IRA later. Or maybe the other way around is better for you. A free 20-minute consultation with our experienced advisors can put you on the right path.
How to Open Your IRA and Roth IRA Account?
We can help you set up your IRA and Roth IRA at any of the top companies such as Fidelity, Vanguard and American Funds.
For more information CLICK HERE to schedule a FREE 20 Minute CONSULTATION! Let us help you start or manage your annuities.
Paul@HappyPaul.com | (949) 215-7880