Retirement
IRAs
An individual retirement account lets your savings grow with tax advantages, whether you're opening your first account or moving money from an old plan.
At a glance
- Types
- Traditional and Roth
- Taxes
- Pay now or later
- Contribution limits
- Set by the IRS yearly
- Required withdrawals
- Traditional, from age 73
- Can hold
- Fixed and indexed annuities
How it works
With a traditional IRA, contributions may be tax deductible and you pay income tax when you take money out. With a Roth IRA, you contribute after-tax money and qualified withdrawals are tax free.
Required minimum distributions from traditional IRAs generally begin at age 73. Roth IRAs have no required withdrawals during the owner's lifetime.
An IRA can be funded with a fixed or fixed indexed annuity, which protects your principal from market losses while it grows.
Who it's for
- Anyone with earned income who wants to save for retirement
- People leaving a job with a 401(k) to roll over
- Self-employed people without a workplace plan
- Retirees who want to protect savings from market drops
Good to know
- Withdrawals before age 59½ may face a 10% penalty plus income tax, with some exceptions.
- Income limits can affect whether you can contribute to a Roth IRA.
- You can move an existing IRA to a new provider without taxes when it's done as a direct transfer.
- We aren't tax advisors, so we recommend confirming your tax situation with a CPA.
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