Is an IRA Right for You?

Planning for retirement looks different for everyone, but starting early and saving consistently can help you feel more prepared for the future. An Individual Retirement Account (IRA) is one way to build long-term retirement savings while potentially receiving tax advantages along the way.

An IRA is a personal retirement savings account that allows you to contribute money each year and grow those funds over time. Depending on the type of IRA you choose, you may receive tax benefits now or in retirement.

Types of IRAs

The two most common IRA options are Traditional and Roth IRAs.

Traditional IRA

A Traditional IRA may allow you to make tax-deductible contributions, depending on your income and eligibility. Your savings grow tax-deferred, meaning you typically won’t pay taxes until you withdraw funds during retirement.1

Roth IRA

A Roth IRA is funded with after-tax dollars, but qualified withdrawals in retirement are generally tax-free.1 This option may be appealing for individuals who expect to be in a higher tax bracket later in life.

Benefits of an IRA

An IRA can help you:

• Save consistently for retirement 
• Potentially receive tax advantages 
• Build long-term financial security 
• Grow retirement savings over time 
• Supplement employer-sponsored retirement plans 

Many people use IRAs as part of a broader retirement strategy to help prepare for future living expenses and healthcare costs.

Is an IRA a Good Fit?

An IRA may be worth considering if you:

• Want to start saving for retirement 
• Are looking for tax-advantaged savings options 
• Want additional retirement savings outside of a workplace plan 
• Prefer flexible retirement account options 
• Are planning for long-term financial goals 

Contribution limits and eligibility requirements are set annually by the IRS and may vary based on income and age.

Important Things to Know

Withdrawing funds from an IRA before retirement age may result in taxes or penalties, depending on the account type and circumstances. Understanding contribution limits, withdrawal rules, and tax implications is important when deciding which IRA option fits your goals.

If you’re considering opening an IRA, our team can help you explore your options and better understand which account may be right for you.

1 Consult your tax advisor regarding eligibility, deductibility, and tax advantages.