Traditional IRA - Traditional Vs Roth
Making the decision to begin a retirement savings plan is an important first step to ensuring you will enjoy a financially secure future.
There are however many factors to consider when trying to decide which plan is best for you.
If you already contribute to a traditional IRA an equally important question is whether to stay with the plan you already have or switch to a Roth IRA.
Planning for your retirement is serious business and gathering all the information you can is vital in your decision making process.
Take the time right now to research the benefits as well as the limitations of both the Roth and traditional IRA retirement plans.
If you are still a long way from retiring it is difficult to know what state the economic climate will be in.
Choosing the right plan for your particular circumstances will ensure a stress free retirement no matter where the economic trends will be in your later years.
Both the Roth and the traditional IRA are excellent ways to save and each offer unique advantages and limitations.
Deciding which plan to go with will certainly be a major decision and can have enormous financial consequences.
It is important to arm yourself with as much information as you can before you make such a decision.
Investing a little of your time now by researching both types of plans will undoubtedly be one of the best investments you can make for your future financial security.
Depending on your income level your traditional IRA contributions will be tax deductible while contributions to a Roth IRA are not.
With a traditional IRA you can begin making withdrawals at age 59 1/2 years of age and then become mandatory by age 70 1/2.
With a Roth IRA there is no mandatory age for distributions.
With both plans, your contributions can be used to purchase a variety of investments such as certificates of deposit, bonds or stocks.
There are some restrictions that apply to a Roth IRA such as the plan being available only to single-filers earning no more that $95,000.
00 or if you are a married couple, your combined annual earnings cannot exceed 150,000.
00.
There are other considerations to look at like, tax deferred vs.
tax free with obvious financial implications.
Although at the outset there may seem to be an overwhelming number of variables, methodical information gathering will help you put it all into perspective.
Arming yourself with as much information as possible will make it easier to make the decisions that will be best for your particular retirement goals.
Perhaps you have always dreamed of traveling or purchasing a vacation home where you and your loved ones can enjoy leisurely get-togethers every year.
You many have made the decisions that helping your grandchildren with their college education would be a priority when you retire.
No matter what you plan to do when you reach retirement your dreams can be realized as long as you take some time right now to investigate what IRA is for you.
There are however many factors to consider when trying to decide which plan is best for you.
If you already contribute to a traditional IRA an equally important question is whether to stay with the plan you already have or switch to a Roth IRA.
Planning for your retirement is serious business and gathering all the information you can is vital in your decision making process.
Take the time right now to research the benefits as well as the limitations of both the Roth and traditional IRA retirement plans.
If you are still a long way from retiring it is difficult to know what state the economic climate will be in.
Choosing the right plan for your particular circumstances will ensure a stress free retirement no matter where the economic trends will be in your later years.
Both the Roth and the traditional IRA are excellent ways to save and each offer unique advantages and limitations.
Deciding which plan to go with will certainly be a major decision and can have enormous financial consequences.
It is important to arm yourself with as much information as you can before you make such a decision.
Investing a little of your time now by researching both types of plans will undoubtedly be one of the best investments you can make for your future financial security.
Depending on your income level your traditional IRA contributions will be tax deductible while contributions to a Roth IRA are not.
With a traditional IRA you can begin making withdrawals at age 59 1/2 years of age and then become mandatory by age 70 1/2.
With a Roth IRA there is no mandatory age for distributions.
With both plans, your contributions can be used to purchase a variety of investments such as certificates of deposit, bonds or stocks.
There are some restrictions that apply to a Roth IRA such as the plan being available only to single-filers earning no more that $95,000.
00 or if you are a married couple, your combined annual earnings cannot exceed 150,000.
00.
There are other considerations to look at like, tax deferred vs.
tax free with obvious financial implications.
Although at the outset there may seem to be an overwhelming number of variables, methodical information gathering will help you put it all into perspective.
Arming yourself with as much information as possible will make it easier to make the decisions that will be best for your particular retirement goals.
Perhaps you have always dreamed of traveling or purchasing a vacation home where you and your loved ones can enjoy leisurely get-togethers every year.
You many have made the decisions that helping your grandchildren with their college education would be a priority when you retire.
No matter what you plan to do when you reach retirement your dreams can be realized as long as you take some time right now to investigate what IRA is for you.
