An IRA account is an individual retirement account. This type of account is not setup by your employer, but rather an individual takes out this type of account to start saving for retirement. The IRA is not itself an investment. It’s essentially a place to store your investments and savings until you retire, and it comes with tax breaks. To open an IRA in Marysville, CA area. individuals can visit with a professional financial advisor to discuss the best type of IRA for their specific financial needs.
Traditional IRA
The traditional IRA is an account that must open and begin drawing from before you are 70.5 years of age. Your or your spouse must be earning taxable income in order to contribute to a traditional IRA. You can open this type of retirement account at any time, and contribute up to a set amount each year, as determined by the IRS. You do pay taxes for drawing the money out of your IRA, but the money grows tax-free while it sits in the account. This means that you pay no taxes from interest, dividends, or gains while the money is in the IRA. Marysville, CA residents can open a traditional IRA at any bank or financial institution.
Roth IRA
The Roth IRA is similar to the traditional, except you are not taxed when you withdraw the money. You can also contribute to this type of retirement account beyond the age of 70.5 years old. This means that if you continue working, even part time, you can still contribute to this account later in life. It does have income limitations for contributing, and a financial advisor can tell you if a traditional or Roth is better for your future financial goals.
SEP or Simple IRA
Individuals who are self-employed, run a small business, or plan to turn a self-employed career into a small business may benefit from either a SEP or simple IRA plan. These plans have limits on who can contribute, but depending on the type of IRA, Marysville CA small business owners can open an account that allows employees to contribute. The simple IRA is easier to add employees to and may benefit you if you have plans to open a small business soon, otherwise a SEP account may be the better choice. Only a certified financial advisor can provide the detailed financial advice you need, but an IRA is a great way to store money for your future retirement needs.
To learn more about opening an IRA in Marysville, CA, click here.
