April 15th is quickly arriving and there are a flood of people opening IRAs. Saving for your retirement is more and more important given the current and future state of Social Security benefits. Baby boomers are starting to seriously consider their retirement options.
The two most frequently used retirement accounts are the Traditional IRA and the Roth IRA. The biggest difference between a Traditional and a Roth IRA is the way contributions are deducted concerning your taxes. Contributions to a Traditional IRA are deductible and Roth IRA contributions are always non-deductible. A Traditional IRA is tax-deferred until you must take your required minimum distributions. A Roth IRA is tax-free since you paid your taxes when you made your contribution.
Your current tax bracket may help you make the decision as to which type of account is best for your situation…as always consult a professional. Your retirement funds are your future.
March 23, 2009 at 9:26 pm
[...] Here is the original post: Open Your Retirement Account Today « Provident Group [...]