Traditional & Roth IRAs
IRAs allow you to make tax-deferred investments to provide financial security when you retire.
Getting started with an IRA: Assess your financial needs –
- Where am I, financially? The Roadmap to Saving and Investing (U.S. Securities and Exchange Commission) can help you evaluate your financial situation.
- What will my Social Security retirement benefit be? Calculate what you can expect as your Social Security retirement benefit.
- How much will I need when I retire? Use the American Savings Education Council (ASEC)calculator to estimate what you’ll need.
- The Department of Labor website also has retirement planning information.
What kind of IRA best suits your needs?
Traditional and Roth IRAs allow you to save money for retirement. This chart highlights some of their similarities and differences.
|Who can contribute?
||You can contribute if you (or your spouse if filing jointly) have taxable compensationbut not after you are age 70½ or older.
||You can contribute at any age if you (or your spouse if filing jointly) have taxable compensation and your modified adjusted gross income is below certain amounts (see 2014 and 2015limits).
|Are my contributions deductible?
||You can deduct your contributions if you qualify.
||Your contributions aren’t deductible.
|How much can I contribute?
||The most you can contribute to all of your traditional and Roth IRAs is the smaller of:$5,500 (for 2014 and 2015), or $6,500 if you’re age 50 or older by the end of the year; oryour taxable compensation for the year.
|What is the deadline to make contributions?
||Your tax return filing deadline (not including extensions). For example, you have until April 15, 2015, to make your 2014 contribution.
|When can I withdraw money?
||You can withdraw money anytime.
|Do I have to take required minimum distributions?
||You must start takingdistributions by April 1 following the year in which you turn age 70½ and by December 31 of later years.
||Not required if you are the original owner.
|Are my withdrawals and distributions taxable?
||Any deductible contributions and earnings you withdraw or that are distributed from your traditional IRA are taxable. Also, if you are under age 59 ½ you may have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.
||None if it’s a qualified distribution (or a withdrawal that is a qualified distribution). Otherwise, part of the distribution or withdrawal may be taxable. If you are under age 59 ½, you may also have to pay an additional 10% tax for early withdrawals unless you qualify for an exception.
The Social(k) IRAs are through Folio Investing. Accounts are $25 annually per person. Trading costs vary. Ready-To-Go Folios no load, $4 trades or $290 annually for Unlimited Plan. Folio Services & Fees.
SEP and SIMPLE IRA Plans
Payroll Deduction IRAs for Small Businesses
Ready to see how Social(k) can kickstart your investment? Get Started