IRA
What is an individual retirement account (IRA)?
IRAs are investment accounts that hold stocks, bonds, mutual funds, ETFs, and more. It’s a type of tax-advantaged savings account intended to help you save for retirement.
Traditional and Roth
With a Traditional IRA, contributions are made pre-tax, so you can deduct contributions from your income tax, resulting in a lower tax liability.
Earnings in a Traditional IRA grow tax-deferred until you withdraw them in retirement at which time you pay tax on the amount you withdraw, just like regular earned income.
If you need to, you can always withdraw Roth IRA contributions, (though not necessarily earnings) penalty-free.
With a Roth IRA, contributions are made after-tax (so taxes have already come out of the money you’re contributing).
Earnings in a Roth IRA grow tax-deferred, and you get to withdraw the money tax-free in retirement.
Both IRAs have annual contribution limits and other rules, which an advisor can help you navigate.
Prior to retirement if you need to, you can always withdraw Roth IRA contributions, (though not necessarily earnings) tax/penalty-free. (Speak with your tax advisor for more details).
How much do you need to retire the way you want? Meet with your Fidelity Mutual Financial Advisor today to find out.
How can IRAs fit into your plan?
Contributing to an IRA can boost your retirement savings while giving you a nice tax benefit.
Your IRA options will vary depending on things like income, access to a retirement plan at work, filing status, etc…
Our advisors are here to talk to you about the right IRA for your situation.
Who can benefit from an IRAs?
Anyone who would like to set aside money for retirement. Because everyone’s situation is different, an advisor can be invaluable in making the most of every dollar you save for retirement.
Take the next step.
A Fidelity Mutual Financial Advisor can help you with IRAs and determine if they can fit into your financial plan.