IRAs: Individual Retirement Accounts
IRAs Offer Tax-Deferred Retirement Savings
IRAs are investment accounts that are designed to provide you a tax-advantaged way to save for retirement. The special IRS status given to IRAs also comes with some limitations, such as how much you can contribute, when you can begin making distributions and what happens when you make your distributions too soon.
When to consider an IRA
Different types of IRAs
Investing in IRAs through Wachovia Securities
When to Consider an IRA
You should consider investing in an IRA if:
- Your employer (or your spouse's employer) doesn't offer a qualified retirement plan, such as a 401(k), 403(b), or a profit sharing or pension plan
- You're maximizing your contributions to your employer-sponsored plan and would like to save more
- You're changing jobs and need to move your assets from your former employer's qualified retirement plan
- You want to consolidate your retirement savings for easier management
Different Types of IRAs
There are several types of IRAs you can choose from, each with their own sets of rules and tax advantages. A Wachovia Securities Financial Advisor can help you determine which of the IRAs makes the most sense for your situation. However, below is an overview that can help you determine which of the IRAs you may qualify for.Traditional IRAs. With traditional IRAs, you pay no taxes on your earnings until you begin taking distributions at retirement. In addition, your contributions may be tax-deductible if your modified adjusted growth income (MAGI) falls within certain limits.
Roth IRAs. Contributions to a Roth IRA are made after-tax rather than pretax. However, earnings are tax-free if you meet certain conditions.
SEP & SIMPLE IRAs. SEP IRAs and SIMPLE IRAs are retirement plans designed for the needs of small business owners and their employees. They offer tax-deductible contributions for the employers as well as tax-deferral for the employees.
IRA Rollovers. Take your retirement savings with you when you change jobs or retire. This gives you investment flexibility and helps make managing your retirement savings easier.