Terms of Use Yes, contributions to a Roth IRA may be withdrawn tax- and penalty-free at any time, for any reason. After the IRA has been established for five years, earnings on contributions may be withdrawn tax- and penalty-free, provided the owner meets any of the following specifications: has reached age 59½ has become permanently and totally disabled is deceased is withdrawing the funds for first-time home purchase First-time home purchase withdrawals are limited to a maximum wi  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 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 2025: Up to 100% of your includable compensation (if less than the elective deferral limit). Includable compensation is  More...

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 $7,000 per year for tax year 2025 ($8,000 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: 2025 Income li  More...

Terms of Use No . You cannot borrow from your IRA. Using your IRA for collateral will cause the portion of the IRA used as collateral to become taxable and may cause penalty taxes. IRAs receive special treatment from the IRS because you do not have use of those funds. If you could pledge them as collateral, you would effectively have use of the funds. You can withdraw funds from an IRA under certain circumstances. If you withdraw money from your IRA, the value of the withdrawal is included in   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: Fully or  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 as  More...

Terms of Use The benefits within your IRA will pass directly to your named beneficiaries without being subject to the estate probate process. Investments in a Traditional IRA or 401(k) retain most of their character as an IRA or 401(k), but they generally must be withdrawn from those accounts over time. The timing of withdrawals depends on whether your spouse inherits it or another beneficiary (such as your child). If your primary beneficiary is your spouse, they have the option of assuming   More...

Terms of Use Yes, you can access the money in a traditional IRA before you retire, but in most cases there are penalties associated with doing so. If you withdraw funds prior to age 59-1/2 from a traditional IRA, they will be taxed at ordinary income tax rates. Withdrawals prior to age 59-1/2 will also be subject to a 10% penalty from the IRS. Any funds withdrawn after age 59-1/2 are penalty-free. The 10% penalty for withdrawing funds prior to age 59-1/2 is waived for any withdrawals d  More...

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...