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| Individual Retirement Accounts |
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IRAs are a great way to save on taxes while saving for your retirement. With significant changes to the traditional IRA, many more people can make deductible IRA contributions including the Rollover IRA to transfer funds from one trustee to another.
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| Traditional IRA |
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The most common type of IRA is the Traditional or Contributory IRA. This type of IRA can help you pay less in taxes now, using pre-tax dollars to build your principal for more earnings later. You and your spouse may contribute up to $4,000 each however, contributions may not be tax deductible for those covered by employer plans with incomes over certain levels. Features of a traditional IRA includes:
• Interest is tax-deferred until withdrawal
• Contributions may be tax deductible depending on income (consult with your tax advisor for
potential tax benefits)
• Tax deductible contributions are taxable on withdrawal
• If one spouse is covered by an employer IRA, the other can have an IRA and deduct the
contributions from federal income taxes (with qualifying income limits)
• Contributions after the age of 70½ cannot be made since, at that time, you must begin
taking your required distribution(s)
• Up to $10,000 may be withdrawn for purchase of a first home and funds withdrawn are taxable
with no penalty
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| Rollover IRA |
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The Rollover IRA is often the smartest choice for someone when they leave a company since it offers many more investment choices, the possibility of lower fees and the ease of consolidating your retirement money into one place to keep record keeping simple. For more information on a Security Savings' Rollover IRA, call our professional service team at 888-703-5414.
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