Traditional and Roth IRAs offer valuable retirement savings options, and the choice often depends on your circumstances and financial goals.

Traditional IRA:

• Tax Treatment: Contributions may be tax-deductible, potentially lowering your taxable income in the contribution year.
• Tax on Withdrawals: Taxed when you withdraw funds in retirement.
• Required Minimum Distributions (RMDs): Starting at age 73, you must withdraw a minimum amount each year.

Roth IRA:

• Tax Treatment: Contributions are made with after-tax dollars, so they are not tax-deductible.
• Tax on Withdrawals: Qualified withdrawals (including earnings) are tax-free in retirement.
• Required Minimum Distributions (RMDs): No RMDs during the account holder’s lifetime.

Choosing Between Them:

• Age Consideration: Younger individuals might benefit more from a Roth IRA, while those closer to retirement might find tax deductions from a Traditional IRA advantageous.
• Tax Bracket: Consider your current and expected future tax brackets. If you anticipate higher taxes in retirement, a Roth IRA may be beneficial.

We can help you choose the right IRA account(s), make wise investment decisions, and manage rollovers and withdrawals.

Individual Retirement Accounts (IRAs) offer diverse investment options to help you build wealth and secure your financial future.

You can choose to allocate funds to:

Stocks, provide the potential for capital growth through the appreciation of individual company shares.

Bonds offer a more conservative option, delivering steady income through periodic interest payments.

Mutual funds and Exchange-Traded Funds (ETFs) provide instant diversification by pooling money from multiple investors to invest in various securities.

Real Estate Investment Trusts (REITs) allow you to partake in real estate ownership, offering both dividends and potential appreciation.

Certificates of Deposit (CDs) provide a low-risk avenue with guaranteed returns over a fixed term. Precious metals, such as gold and silver, serve as a hedge against economic uncertainties.

Annuities, structured as insurance products, provide regular payments, offering both income and tax advantages.

For a hands-off approach, Target-Date Funds automatically adjust asset allocation based on your anticipated retirement date.

Additionally, holding Cash or opting for Money Market Instruments within an IRA ensures liquidity and capital preservation.

Tailoring these options to your risk tolerance, time horizon, and financial goals enables you to construct a well-balanced and diversified IRA portfolio.

Individual Retirement Accounts (IRAs) offer flexible contribution options, allowing you to contribute up to a certain limit each year.

For the tax year 2023, the contribution limit is $6,500 for individuals up to age 50. For those over 50, the limit is $7,500.

For the tax year 2024, the contribution limit is $7,000 for individuals up to age 50. For those over 50, the limit is $8,000.

Contributions can be made in cash or a combination of cash and eligible investments, providing an opportunity for long-term wealth accumulation.

It’s important to note that contribution limits can change annually, and factors such as income and tax filing status may affect your eligibility for certain types of IRA contributions. Understanding these details is crucial for maximizing the benefits of IRA accounts and building a secure retirement nest egg.

An IRA rollover allows you to transfer funds from a retirement account such as 401(k) or 403(b) into an individual retirement account (IRA), while preserving the tax-deferred status of those assets. If done correctly, IRA rollovers and transfers involve moving funds between accounts without tax consequences.

There are two main types of IRA rollovers—direct and indirect⁠—and following Internal Revenue Service (IRS) rules is crucial to avoid paying taxes and penalties.

A direct rollover is the safest way to move assets from one retirement account to another, as the funds are transferred without you handling them.

If you handle the funds in an indirect rollover, they must be transferred to the new IRA within 60 days. If not, you’ll be subject to taxes and penalties.

Inheriting an IRA involves deciding who gets the money in the account after the owner passes away. This choice has important implications for taxes and how the funds are distributed. You can pick individuals, trusts, or entities as beneficiaries, each with its own tax and distribution rules.

The IRS has specific rules about handling inherited IRAs, including the timing of required distributions for non-spouse beneficiaries. When you inherit an IRA depends on factors like your relationship with the person who owned it and potential estate taxes.

Choosing the right strategy for distributing the inherited IRA is essential for optimizing taxes and preserving wealth. Some beneficiaries may have the option to take out money over their life expectancy, which could offer tax advantages.

It’s crucial to keep up with any changes in tax laws and regularly review and update your beneficiary choices based on your unique circumstances and estate planning goals.

If things get complicated, we can help you navigate the complexities of IRA inheritance and ensure a strategic and tax-efficient approach.