An IRA, or Individual Retirement Account, provides you the opportunity to make monthly contributions to a fund that you can access when you reach retirement age. Your contributions to your IRA are not taxed until you withdraw them at retirement age, allowing them to grow tax-deferred. You may be able to save on your taxes by deducting qualified contributions from your taxable income. The amount you can deduct will vary depending on your income, marital status and your level of involvement with your employer’s sponsored plan.
If you are retiring or changing jobs and anticipate withdrawing money from your employer’s retirement plan, you can avoid withdrawal penalties by transferring your assets into an IRA or another qualified plan.
It’s never too early to start planning for retirement.
Talk to a Community Bank advisor today and find out if an IRA is right for you. Call us at 888-745-2265 for more information.