Individual Retirement Account (IRA)

Traditional IRA Accounts provide tax-free accumulated interest income until retirement and can also receive tax deductions for the years you contribute money.

The advantages of a Traditional IRA include:

• No penalties for withdrawals at the age of 59.5
• Defer tax payments up to the age of 73
• No penalties on withdrawals for higher education, first-time home purchase, and child adoption (taxes will be paid on the amount withdrawn).
• Contributions to traditional IRAs are pre-tax contributions, meaning that you won’t have to pay interest on deposited funds until those funds are withdrawn.

Roth IRA Accounts allow you to contribute post-tax contributions into an account, leaving you with no tax deductions for accumulated earnings upon retirement if you meet requirements to open a Roth IRA.

The advantages of a Roth IRA include:

• No penalties for withdrawals at the age of 59.5
• No penalties on withdrawals for higher education, first-time home purchase, and child adoption(taxes will be paid on the amount withdrawn).
• Contributions to Roth IRAs take place after income taxes, meaning that you won’t have to pay interest on any interest that accumulates over time, leaving you with more money in the long run.