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When
determining which IRA is best for you, your choice should be based
on three factors:
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Eligibility
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Your particular tax situation
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When you plan to begin withdrawals
The Traditional IRA allows tax-deferred growth and may give you an
"up front" tax deduction if you are eligible. All
withdrawals are subject to taxation. Your tax advisor
may recommend a Traditional IRA if you are eligible
to deduct your contributions and you believe you may be in a lower tax bracket
at retirement when you make the withdrawals.
The Roth IRA grows tax-free, and qualifying withdrawals are also
tax-free. However, the Roth IRA does not provide a tax deduction in
the year of the contribution. Distributions from a Roth IRA are not
mandatory, and this gives additional flexibility during
retirement. The closer you are to retirement, the less time there is
for earnings in a Roth IRA to grow tax-free, and thus, the shorter savings
period reduces the advantages of the Roth IRA versus the Traditional IRA.
Latshaw Wealth Management, in conjuction with your tax advisor, can explain a Traditional IRA, a Roth
IRA, or discuss partial contributions to both a Traditional and a Roth IRA.
To speak directly with a financial advisor about IRAs or IRA rollovers, please
call (800) 434-4015.
Or, CLICK HERE
to order a Rollover Kit for more information. |
