Traditional and Roth IRAs, Education and Health Savings Accounts
Allows you to make contributions with pre-tax money and may provide a tax deduction, while the investment earnings are tax-deferred until withdrawn from the account.
Advantages:
Individuals age 59½ are eligible to start taking withdrawals, but at age 70½, required minimum distributions must begin.
LEARN MORE
Allows you to make contributions with after-tax dollars (not eligible for tax deduction). The Roth IRA is designed to allow investment earnings to grow tax-free and provides the opportunity for tax-free withdrawals in retirement. Earnings and qualified distributions are tax-free after age 59½.
Advantages:
U.S citizens, regardless of age, can open a Roth IRA, assuming their individual Modified Adjusted Gross Income (MAGI) is within allowable limits.
LEARN MORE
A Health Savings Account (HSA) allows you to save for current and future medical expenses in a tax-advantaged environment, while potentially reducing your health insurance premiums.
Advantages:
A Coverdell Education Savings Account (CESA) allows you to save for educational expenses in a tax-advantaged account. Earnings from investments in the account grow tax-deferred and distributions are tax-free when used for qualified expenses.
Advantages:
2019 Traditional & Roth IRA Contribution Limits Traditional & Roth IRA Contributions and Catch Up Provisions Plan Name Standard Limit Catch-up Limit (Age 50 and older) Traditional $6,000 $7,000 Roth3 $6,000 $7,000 3Modified AGI Limits:2019Single: $122,000 – $137,000Married Filing Jointly: $193,000 – $203,000 2019 Traditional & Roth IRA Contribution Deadline is 4/15/2020. 2020 Traditional & Roth IRA […]
