An IRA may be just the tool you need to add to your retirement arsenal. For some folks it’s a great way to gain tax advantages for retirement savings in the United States.
The amount of your qualified contribution is based upon your adjusted gross income and the IRAs you select. We recommend you consult your tax advisor for specific advice.
A Traditional IRA may be best if your goal is a tax deduction right now or if you expect to pay taxes at a significantly lower rate in retirement. Earnings for a traditional IRA grow tax-deferred until withdrawn and contributions may be tax deductible. You can open and make contributions to a traditional IRA if you (or, if you file a joint return, your spouse) receive taxable compensation during the year, and you are not age 70 ½ by the end of the year.
A Roth IRA may be your best choice if you want a tax break in the future. A Roth IRA is more flexible than a traditional IRA. Regular contributions can be withdrawn tax-free and without penalty at any time. Earnings for a Roth IRA are tax-deferred and withdrawals are tax-free if the account is open for five tax years and withdrawals are for a qualified reason such as reaching 59 ½ years of age, disability, death, or a first-time home purchase (lifetime limit for exemption on first home purchase is $10,000).
These accounts were designed to encourage saving for the educational expenses of a child. Unlike section 529 plans, Coverdell ESAs can be used to cover costs at most public, private, and parochial schools—elementary school through college.
There is a $2,000 per year contribution limit for each child. Withdrawals for qualified educational expenses are tax-free. Please consult a tax professional for specific tax advice.
To open an IRA account, stop by a branch or call (503) 656-0671. It’s good to bank at Clackamas!