Today’s Financial Planning tip will cover “What is an IRA?”
An IRA, is an Individual Retirement Account that is an investing vehicle used by individuals to save for retirement with tax free growth. What this means for you is that once the money is contributed in the account, there are no taxes imposed on the dividends or capital gains that the investments earn. There are several types of IRAs such as Traditional IRAs, Roth IRAs, Simple IRAs and SEP IRAs. The contribution limits for Traditional IRAs is $5500 for 2018 and $6500 if you are age 50 or older.
There are several factors to consider if an IRA is the best way for you to save for retirement. Feel free to contact me to see if an IRA is right for you and your future retirement savings. And remember to consult with your tax advisor for your specific tax related questions.
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Catherine Magaña is a CFP® or CERTIFIED FINANCIAL PLANNER TM in Carlsbad California. If you would like to set up a time to discuss your financial goals she can be reached at 760-692-5700, firstname.lastname@example.org or private message.