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IRA Management in Indianapolis, IN

An Individual Retirement Account (IRA) is a tax advantage account that allows an individual to save and investlong-term with tax-free growth or on a tax-deferred basis.

The main goal for these accounts is to provide a structured way for individuals to save money in designated accounts that will be able to provide additional income during retirement. Contributions to these accounts over time can have quite an impact on the amount one can save for their future in the years they are no longer working. There are two main types of individual retirement accounts; traditional IRAs and Roth IRAs that each have different rules and advantages.

TraditionalIRA

  • Contributions are tax deductible 
  • Investment gains inside the account are tax deferred
  • Anyone can with earned income can set up and fund a traditional IRA
  • Annual max contribution limit for 2021 for persons 50 years and under - $6,000/year per individual
  • Annual max contribution limit for 2021 for persons 50 years and older - $7,000/year per individual
  • Contribution age restriction – none 
  • Distributions are taxed as ordinary income after age 59 ½. 
  • Distributions prior to 59 ½ equate to additional 10% penalty on top of income tax

RothIRA

  • Contributions are made with after tax money
  • Contribution do not give you a current year tax benefit
  • Investment gains inside the account are tax deferred
  • Not everyone can have a Roth, can be restricted by income limits (if an individual or married couple filing jointly earn too much money each year, they would not be eligible for a Roth)
  • Annual max contribution limit for 2021 for persons 50 years and under - $6,000/year per individual
  • Annual max contribution limit for 2021 for persons 50 years and older - $7,000/year per individual
  • Contribution age restriction – none 
  • Distributions are tax free after 5 years and after 59 ½ 

Which IRA isright for you?

Here at Werner Financial, we constantly preach that no one person has the exact same situation, so that answer is one that we love to help you solve during an analysis meeting. Jason is a skilled and experienced financial advisor, well-versed in the pros and cons of investment account structures. If you are interested in designating a plan to save for your retirement, take on the opportunity to have a meeting with Jason to discuss your options.

Client reviewing IRA Management plan in Indianapolis, IN
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You know how to succeed at what you do. With Werner Financial in your corner, you can rest easy knowing that the fruits of your success are protected and that your financial plan is working as hard as you are. Schedule a no-obligation conversation with Jason Werner at Werner Financial today to secure your success.

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