How to Choose the Best IRA for Your Retirement Savings
“A Tooth is Loose!” Did you hear us Tooth Fairy! Your midnight money drops may have been the first source of income for kids, but many of those kids are adults now and they need to choose between a traditional IRA and a ROTH IRA for their retirement. We know that’s not your cup of teeth, so you should tooth what you tooth best and let us handle this. Besides, don’t you have some pillows to shake down?
We, at Achieve Financial Group, are going to sleepwalk over to the grownups and acci-DENTAL-ly give them more wisdom on the difference between a Traditional IRA, which is tax deductible and a ROTH IRA, which is NOT tax deductible.
- Contributions are tax-deductible if you earn less than the income limits
- ”Base” and “catch-up” contribution limits are available to people 50 years and older.
- No taxes on capital gains while money is in a Traditional IRA.
- No penalties for early withdrawals at 59.5 years of age.
- Withdrawals will be taxed.
- Contributions are NOT tax deductible if you earn less than the income limits.
- Any profits you generate will grow tax-free.
- There is no mandatory distribution age.
- The same bankruptcy protections that cover the Traditional IRA also cover the Roth IRA.
- Congress limits it to individuals and families with pre-determined thresholds.
Okay, Tooth Fairy, we never meant to fallout with you, so hopefully you can brush off our interference. We just don’t want soon-to-be retirees to play tooth or dare with their savings. You see, with a Traditional IRA or ROTH IRA, they’ll be more fulfilled and prevent cavities in their future retirement plans. #AchieveMore