You can save on your present taxes with an Individual Retirement Account (IRA), by deducting your qualified contributions from your taxable income. Most Americans can deduct all or part of their IRA contributions. The deductible amount depends on your income, martial status, and whether you’re an active participant in an employer sponsored plan as defined by the Internal Revenue Service.
With an IRA, you can also defer taxes until you retire, when you may be in a lower tax bracket. You may want to consult your tax advisor to review your particular situation on the tax deductible status of an IRA. The IRA is a smart way to save for a secure retirement.
Are you eligible to have an IRA? If you are under age 70 1/2 for the entire tax year and have compensation, you are eligible to establish an IRA, even if you already participate in any type of government plan, tax-sheltered annuity, simplified employee pension (SEP) plan, or qualified plan (pension or profit sharing) established by an employer.
Are you retiring or changing jobs? If you are retiring or changing jobs and plan to withdraw money from your employer’s retirement plan, you may be interested in a “direct rollover” of your money into a new IRA account with us. A direct rollover is a Qualified Plan or tax-sheltered Annuity distribution that is sent directly from the plan administrator (employer) to an IRA. Funds moved to an IRA via a direct rollover are not subject to the mandatory 20 percent federal income tax withholding at time of distribution.