PLAN FOR RETIREMENT

A traditional IRA allows you to save pre-tax income that grows tax-deferred. The funds are taxed at the owner’s current income tax rate when they’re withdrawn. Contributions may be tax-deductible.

Who can open one: Practically anyone can open and contribute to a traditional IRA. The main requirement from the IRS(opens in a new window) is to have taxable compensation.

Benefits:

• Instead of being taxed, your income is invested in savings

• You may be in a lower tax bracket when you make withdrawals from the account

• Withdrawals can be made penalty-free starting at age 59 ½
  

Withdrawals from Roth IRAs in retirement are tax-free. Contributions to Roth IRAs are made with after-tax dollars, and contributions are not tax-deductible.

Who can open one: Roth IRAs are available for individuals with incomes below limits set by the IRS(opens in a new window). Contributions can be made at any age; however, contribution limits vary based on age.

Benefits:

• Qualified withdrawals in retirement will be tax-free

• Original contributions may be withdrawn at any time

• If the account has been open at least 5 years, qualified tax-free distributions may include first home purchase, education or medical expenses
  

When you’re changing jobs or looking for a new one, there’s a lot on your plate. Let our experienced CFS Wealth Management Advisors help you decide what to do with your 401(k) funds. Spend? Transfer? Roll into an IRA? Once you’ve made an informed choice, we’re here to make it happen. Our seasoned advisors can also recommend 401(k) investment options.

Did you know that Social Security benefits don’t need to start as soon as you retire? We can help you plan when to start receiving those valuable benefits to maximize your retirement goals.