Roth IRAs are tax-advantaged differently from traditional IRAs. Not sure whether a Traditional IRA or a Roth IRA may be better for your tax situation and long-term financial goals? We’re here to help.
Cherry or blueberry?
The ingredients you put into your IRA can affect your long term retirement savings.
Some people prefer traditional IRAs because of their tax advantages. In some instances, they are filled with pre-tax income. So your total savings has the potential to grow with that extra money. The tax bill doesn’t come until you start slicing up that pie, but there is another choice.
Roth IRAs are filled with after-tax dollars. That means when you dig in, all that money may be yours. You have to stick to the Roth IRA recipe though. First, like traditional IRAs, you can only contribute to a Roth IRA if you have earned income. With a Roth IRA, you may contribute as much as $6,500 per year if your earned income is below $138,000 for singles and $218,000 for couples in 2023.
With a traditional and a Roth, if you’re over age fifty, you can make catch up contributions up to $7,500. Early withdrawals are subject to fees only if they aren’t qualified distributions. Roth IRAs are just one choice to consider when creating a retirement strategy.
Call today, and let’s talk about your situation.
Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The credit union has contracted with CFS to make non-deposit investment products and services available to credit union members.