Contact Our Small Business IRA Experts in Syracuse, NY
Also Servicing Utica, Rome, Cortland, Auburn, Fulton, Oswego, and Surrounding Areas
Should I select a Traditional or Roth Individual Retirement Account (IRA) ?
Understanding the difference between your retirement account options is an integral part of your selection process. Allow the professionals at Fiscal Fitness to help explain how the differences may affect you and assist you in making the best choice for your future.
A Traditional Individual Retirement Account (IRA) provides tax-advantaged savings for retirement investors and may be an effective way to supplement your other long-term savings vehicles.
Among their other features, Roth IRAs offer federally tax-free withdrawals and Traditional IRAs offer tax-deductible contributions to qualified investors.
A Traditional IRA allows you to fund your retirement.
A Traditional IRA allows your assets to grow tax-deferred, meaning you won't pay any taxes on earnings until you withdraw the assets. For many investors, contributions to a Traditional IRA will also be tax-deductible. Mandatory distributions, or minimum required distributions must start at age 70 1/2.
You are responsible for taxes in most cases when you deduct from your Traditional IRA.
Contributions to your Roth IRA are rarely deductible.
With a few important exceptions, a Roth Individual Retirement Account (IRA) is essentially a nondeductible traditional IRA. Roth IRAs are also generally subject to the same rules as traditional IRAs.
Assets grow federally tax-free with a Roth IRA. This means you'll never have to pay federal income taxes on your earnings provided certain requirements are met. (Qualified Roth IRA distributions or earnings are also exempt from state taxes in most states.) Contributions can be withdrawn at any time penalty and tax-free.
Deductions made at eligible times are NOT taxed with a Roth IRA.
The above listed products are offered independently through Hazard & Siegel, Inc.