Individual Retirement Accounts (IRAs) are special tax-advantaged savings accounts created to encourage Americans to save money toward retirement and for other important financial needs
The Traditional IRA gives you a tax deduction each year in which you contribute to your account, subject to IRS limits and eligibility. Taxes on all contributions and earnings are deferred until withdrawals are made. Penalties may apply if withdrawals are made prior to age 59 ½ and distributions are required to start in the year in which you obtain the age of 70 ½. There are limited exceptions to both. Contact us for more details.
The Roth IRA, funded with after-tax contributions, offers tax-free accumulation plus tax-free withdrawals in retirement for those that meet the income eligibility limits. Penalties may apply if withdrawals are made prior to age 59 ½, depending on the circumstances, however, there is no current IRS requirement to withdraw money at ay age. Contact us for more details.
Roth IRA Conversion
Your Cutter & Company Financial Advisor will work with you to provide sound advice on whether or not it may be to your benefit to convert your traditional IRA into a Roth Conversion IRA.