Traditional individual retirement accounts (IRAs) were established by the federal government to assist Americans in saving money for retirement. Traditional IRAs are set up by individuals who can contribute up to a set maximum dollar amount each year. Funds contributed to the traditional IRA may be tax deductible. However, funds removed from the IRA at a later date will be taxed as income. If you want to take advantage of the tax incentives of the traditional IRA, you must meet requirements based on income, filing status and the type and amount of other retirement savings options you have available to you. Traditional IRAs must be held by a bank or a brokerage company and the funds can be in the form of certificates of deposit, stocks or mutual funds.
Traditional IRAs are just one of many types of individual retirement accounts. For more information on the wide variety of accounts available, contact the benefits professionals at Savage & Associates. We can explain the tax incentives and benefits of the different types of IRAs to you.
Call 419-475-8665 or fill out our on-line request form for more information or to schedule an exploratory appointment with our experienced professionals at Savage & Associates.