IRA's & Roth IRA's

An Individual Retirement Account (IRA) is a tax-deferred retirement account for an individual that permits individuals to set aside money each year, with earnings tax-deferred until withdrawals begin at age 59 1/2 or later*. The exact amount depends on the year and your age. IRAs can be established at a bank, mutual fund, brokerage or Insurance Company using an annuity. Only those who do not participate in a pension plan at work or who do participate and meet certain income guidelines can make deductible contributions to an IRA. All others can make contributions to an IRA on a non-deductible basis. Such contributions qualify as a deduction against income earned in that year and interest accumulates tax-deferred until the funds are withdrawn. A participant is able to roll over a distribution to another IRA or withdraw funds using a special schedule of early payments made over the participant's life expectancy. 

NEA Valuebuilder
CommonWealth Annuity 
(Formerly Zurich / Kemper)
Zurich Classic 
Kemper Advantage III
Zurich Preferred
TD Ameritrade  

Roth IRA's

A new type of IRA, established in the Taxpayer Relief Act of 1997, which allows taxpayers, subject to certain income limits, to save for retirement while allowing the savings to grow tax-free. Taxes are paid on contributions, but withdrawals, subject to certain rules, are not taxed at all. Contributions to the Roth IRA are invested in mutual funds, stocks, or other securities, and the amount that someone is able to contribute is dependent upon their income, age, and tax filing status. Unique features of a Roth IRA are that it does not require you to start making withdrawals at a certain age, and also it allows an individual to make a qualified withdrawal up to $10,000 for a first time home purchase.

*Distributions from contributions are tax-free. Distributions from earnings are federally tax-free if you’ve had your Roth IRA for at least five years and you’re over age 59 ½, or you’re under age 59 ½, you’ve had your Roth IRA at least five years, and the distribution is due to your death or disability or for a first-time home purchase ($10,000 lifetime maximum). State tax may apply. Clients should review any planned financial transactions or arrangements that may have tax or accounting implications with their professional advisor.