IRAs can help you meet your retirement goals. Making a concerted effort to save for your retirement is critical in helping to ensure financial security for yourself and your family, and the IRA - an Individual Retirement Account or Arrangement - is a way to start.
 
TRADITIONAL IRAS: A traditional IRA allows your retirement savings to grow tax deferred, meaning you won't pay any taxes on earnings until you withdraw your money. Anyone under age 70 with earned income may contribute up to the allowable limit annually (or 100% of earned income, whichever is less) to a traditional IRA.

For many investors, those contributions may also be tax deductible depending on the amount of the investor's income.

If a married couple files a joint tax return, each spouse may contribute up to the annual allowable limit.

ROTH IRAS: If your traditional IRA contributions are not tax deductible, you might consider contributing to a Roth IRA instead. You can never deduct contributions to a Roth IRA.

The Roth IRA was introduced in 1998, and, since then, many investors have opened Roth IRAs or converted traditional IRAs to Roth IRAs. With a Roth IRA, your assets can grow tax-free, meaning you may not have to pay federal income taxes on your earnings, provided certain requirements are met prior to receiving the distribution.

Some IRAs have contribution limitations and tax consequences for early withdrawals. For complete details, consult your tax advisor or attorney

Converting from a traditional IRA to a Roth IRA is a taxable event

To qualify for the tax-free and penalty-free withdrawal or earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59 ½ or due to death, disability, or a first-time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes.