Terms of Use IRAs are a great way for you to save for the future. Your IRA can consist of a range of investments from savings accounts, stocks, bonds, and certificates of deposit or share certificates. You can contribute up to a certain limit each year into your IRA and if you're over 50, you are allowed an additional catch up contribution. The tax advantages of a Traditional or Roth IRA depend on your annual income and whether you are covered by your company's retirement plan. B  More...

Terms of Use The IRS uses MAGI to determine if any or all of your IRA contribution is deductible and if you are eligible for premium tax credits. The higher your MAGI, the fewer deductions you can take on IRA contributions. There is a maximum MAGI when if met, IRA deductions aren't allowed. While you can still contribute to an IRA, but you won't be able to deduct any of the contributions on your tax return. Adjusted Gross Income (AGI) AGI represents your taxable income. AGI is defined   More...

Terms of Use What is a 403(b)? A 403(b) is an employer sponsored retirement savings plan that allows you to save pre-tax dollars for your retirement. A Roth 403(b) permits only after-tax contributions but allows you to diversify your tax risk by letting eligible participants make tax-free withdrawals after retirement. The IRS limits the amount you can contribute each year In 2023: You can contribute up to $22,500. This limit is applicable if you're under age 50 as of December 31st (refer  More...

Terms of Use What is a Roth IRA? The purpose of a Roth IRA is to put away money for retirement. To be classified a Roth IRA, the account or annuity must be designated as a Roth IRA when it is set up. An IRA can be a Roth IRA, but neither a SEP IRA nor a SIMPLE IRA can be designated as a Roth IRA. Roth IRAs are funded with after-tax dollars; the contributions are not tax deductible but qualified distributions are tax-free. You may be able to take a Saver's Tax Credit of 10% to 50% of the co  More...

Terms of Use An IRA is an Individual Retirement Account that provides several tax benefits . IRA accounts can be comprised of fixed income instruments, such as CDs/share certificates, bonds, stocks and mutual funds, to name just a few options. A Traditional IRA enables individuals to save money in a tax-deferred account. What that means is that the earnings from your IRA account will not be taxed until you begin taking money out of the account. Traditional IRA Snapshot Contributions: Tax-dedu  More...

Terms of Use No, contributions to a Roth IRA are not tax-deductible. A Roth IRA allows you (if you do not exceed certain income limits) to invest money by making non-deductible contributions that grow tax-deferred.

Terms of Use There is no legal distinction between a conversion Roth IRA and a regular Roth IRA, both are simply Roth IRAs. A conversion Roth IRA refers to a Roth IRA that receives money from Traditional IRAs through a conversion, rollover or direct transfer. If an account is designated as a conversion Roth IRA, then that account can only accept IRA conversion contributions made in a single year. A separate conversion Roth IRA must be established each year in which an individual desires to c  More...

Terms of Use Yes, you can convert a Traditional IRA to a Roth IRA. Taxpayers at any income level can convert a Traditional IRA to a Roth IRA. Previously deductible contributions to the converted IRA will need to be reported as taxable income, but the Roth IRA income is tax-free. Since there are some tax consequences, be sure to consult with your tax advisor.

Terms of Use These are the primary types of IRAs: Traditional IRA Roth IRA SEP IRA Non-deductible IRA Self-directed IRA Spousal IRA Simple IRA Please refer to the related articles on IRAs for more information.

Terms of Use Yes , you can have as many Roth IRAs as you wish, but there are strict limits on how much you can contribute to these accounts during any given tax year. No matter how many IRAs you have or what type (Traditional, Roth or SEP) you can contribute no more than $6,500 per year for tax year 2023 ($7,500 if you're age 50 or over). Roth IRA contributions are only allowed if your income (technically your Modified Adjust Gross Income or MAGI ) is below a certain level: 2023 Income li  More...