A good, long-term savings option...
An Individual Retirement Account (or IRA) is a variable-time or fixed-rate deposit account. IRAs are a good long term savings or tax-deferred savings option. If you are interested in finding out if you are eligible to contribute to an IRA, contact your tax advisor. There are two different types of IRAs - Traditional and Roth. A Traditional IRA may offer immediate tax benefits. Roth IRA contributions are not tax deductible, but offer more flexibility for withdrawal of contributions or earnings for certain distribution reasons.
What are some advantages of an IRA?
- Opportunity for tax-free income in retirement
- Roth IRAs offer flexibility
- You can contribute to Roth IRAs even after age 70 1/2
- No annual administration fees