Guaranty Bank & Trust Austin 78752
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Sherri Grocke
Jun 16, 2019, 7:04:13 PM6/16/19
to Guaranty Bank & Trust Austin 78752
Corporate pension plans have greatly diminished over the years; the future of social security is in question and because of this, the government has given IRA owners every opportunity to maximize not only their retirement savings, but use their IRA to provide for future generations. The government may NOT be able to meet the retirement needs of your children and grandchildren. (They may not be able to meet your needs.) Through these constant changes to IRA rules, the government is sending a clear message: the American public needs to accept more responsibility for their own retirement. Your IRA can be a very powerful financial tool that can provide income for you and your loved ones, if you know how to take advantage of the opportunities the government has given you. And with this uncertainty facing us, it has become necessary that you educate yourself on how you can protect and provide for you and your loved ones. This educational guide has been developed to help you do exactly that. Our goal is to help you understand the opportunities available to you with your IRA, because unfortunately, if you don't take advantage of them, the long term impact on your retirement and the retirement of your children and grandchildren is at risk.
Anyone who starts a Roth IRA and invests in an IRA will find that they have hundreds of options that are available including even a precious metal IRA. Investment choices include investing in stocks, mutual funds, bonds, derivatives, gold coins and real estate. Most people have a financial advisor who will advise them what is the best IRA and where to invest their money. It may be difficult to make these investment decisions, especially if the investor wishes to hold the investment in an IRA retirement account. Regardless of the available choices to the client, the CPA should be aware of all possible investments.
Individual retirement accounts (IRAs) are a great tool to help you achieve your goals in saving for retirement. The names and terms may be confusing, but you can quickly learn the basics.
To help give you an incentive to maximize IRAs, consider the huge potential growth of your money through compound interest. The earlier you start, the better, but you can also reap the benefits of investing in an IRA starting later in life.
Did you know you have the option of contributing to both a traditional and Roth IRA in the same year? We are here to provide you with expert advice to choose the best IRA for your individual needs. Visit one of our branches or leave your contact information to request a consultation.
And if you changed jobs recently or in the past, ask one of our bankers about a rollover for your investment funds.
Traditional IRA
As a deduction in the current tax year, traditional IRAs can provide more financial security for the future while usually lowering the amount of taxes you pay now. Contributions AND earnings are tax-deferred, so you don't pay income taxes on this money until you take a withdrawal.
If you withdraw any of the funds before age 59.5, the penalty for early withdrawal is 10% plus income tax payments, so plan to leave your money in the account until after that time. You must begin withdrawing minimum distributions by age 70.5.
Roth IRA
With a Roth IRA, your contributions are taxed as income in the year they are deposited, and the earnings are not taxable. The advantage to this type of IRA is that after age 59, all or part of your Roth IRA account can be taken out tax-free and with no penalty. In some situations, the IRS allows you to withdraw Roth IRA funds early with no penalty or taxes.
Another advantage to a Roth IRA is that you do not have to begin taking withdrawals at the age of 70.5, and the entire account can be left to your heirs without penalty.
Anyone who starts a Roth IRA and invests in an IRA will find that they have hundreds of options that are available including even a precious metal IRA. Investment choices include investing in stocks, mutual funds, bonds, derivatives, gold coins and real estate. Most people have a financial advisor who will advise them what is the best IRA and where to invest their money. It may be difficult to make these investment decisions, especially if the investor wishes to hold the investment in an IRA retirement account. Regardless of the available choices to the client, the CPA should be aware of all possible investments.
Individual retirement accounts (IRAs) are a great tool to help you achieve your goals in saving for retirement. The names and terms may be confusing, but you can quickly learn the basics.
To help give you an incentive to maximize IRAs, consider the huge potential growth of your money through compound interest. The earlier you start, the better, but you can also reap the benefits of investing in an IRA starting later in life.
Did you know you have the option of contributing to both a traditional and Roth IRA in the same year? We are here to provide you with expert advice to choose the best IRA for your individual needs. Visit one of our branches or leave your contact information to request a consultation.
And if you changed jobs recently or in the past, ask one of our bankers about a rollover for your investment funds.
Traditional IRA
As a deduction in the current tax year, traditional IRAs can provide more financial security for the future while usually lowering the amount of taxes you pay now. Contributions AND earnings are tax-deferred, so you don't pay income taxes on this money until you take a withdrawal.
If you withdraw any of the funds before age 59.5, the penalty for early withdrawal is 10% plus income tax payments, so plan to leave your money in the account until after that time. You must begin withdrawing minimum distributions by age 70.5.
Roth IRA
With a Roth IRA, your contributions are taxed as income in the year they are deposited, and the earnings are not taxable. The advantage to this type of IRA is that after age 59, all or part of your Roth IRA account can be taken out tax-free and with no penalty. In some situations, the IRS allows you to withdraw Roth IRA funds early with no penalty or taxes.
Another advantage to a Roth IRA is that you do not have to begin taking withdrawals at the age of 70.5, and the entire account can be left to your heirs without penalty.
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