How To Save Money For The Future, While Enjoying Some Tax Breaks
Somebody needs the lasso of truth! And that’s the demigoddess, Diana Prince. Don’t get us wrong. You’re a great Gal. In fact, you’ve proven that you can hold your own in the Justice League. You even have VIP passes all over town, because of your “hero” status. But have your Superfriends mentioned a decent retirement package? Come to think of it, they might all keep working into the next century. How long do you plan on beating up the bad guys? Girl, you need an IRA, an Individual Retirement Account.
An IRA is essentially a savings account with huge tax breaks. Ideally, it’s a great way to put away cash for your retirement without as many tax burdens. There are contribution limits, so you can select the type of IRA that suits your savings goal. Now, no one is sure of how much paper you make fighting crime, but we recommend that instead of spending so much on designer red boots, you should put aside a portion of your income towards your future.
Achieve Financial Group would like to give you some valuable info on the types of IRA accounts that are available. Why don’t you hop in your invisible plane, fly over to our offices and we’ll tell you all about them:
- A traditional IRA is a retirement savings account that’s tax deferred. Only when you withdraw your money during retirement will you have to pay taxes on it. So, your dividends, interest payments and capital gains can accumulate each year without being subject to taxes.
- A Roth IRA is a retirement savings account that builds tax-free. You use your after tax dollars to contribute to your account, so when you withdraw your money at retirement, you get it all tax free.
- A SEP IRA, which stands for Simplified Employee Pension, is a traditional IRA for self-employed individuals or small business owners. Business owners with at least one employee and freelance individuals qualify for this type of IRA. You can contribute up to 25% of your income, which is more than a traditional or Roth IRA.
- A SIMPLE IRA, which stands for Savings Incentive Match Plan for Employees, is a type of traditional IRA that self-employed individuals and small businesses use. Your contributions are tax deductible and as your money builds, it’s not subject to taxes until you withdraw it at retirement. Employees can make contributions, unlike SEP IRAs, and the employer is required to contribute on the employee’s behalf-either a dollar-for-dollar match of up to 3% of salary or a flat 2% of pay even if the employee doesn’t contribute to the account. This type of IRA also has higher contribution limits.
So, put on your tiara, princess, then make a big jump for joy. Your destiny looks fantastic now! Whether you plan on going back to Paradise Island or living here, an IRA will give you the security that you need when you’re finished slaying villains for DC Comics. Now, don’t wait, choose an IRA that works for you and give it a fabulous twirl! #AchieveMore