An IRA is an individual retirement account that allows you to save and in turn, receive tax savings on your tax return. You can open it with only $250 and the maximum you can contribute per year is $5,000 per individual and $10,000 per married couple if they file together. A percentage of this money is deductible on the income tax return, offering immediate tax relief to those who own it.
Here are some questions that can help you learn more about IRAs:
How many IRA accounts can you have at one time?
You can have as many IRAs as you want, but you can only contribute a maximum of $5,000 a year.
Which IRA is right for me?
You must start by identifying your level of risk tolerance and establishing a balance between your personality and the expectations you have regarding your investments. The concept of risk tolerance is subjective and should not be taken lightly, especially when it comes to investments with which we are ensuring future financial stability. We recommend that you visit your financial advisor to help you determine which IRA is right for you.
What happens once you retire?
Once you retire, you can receive a minimum or maximum amount of the money you contributed based on an estimate of your life expectancy.
Are you too young or too old to open an IRA?
If you are working, and you are under 75 years of age; you can contribute for your retirement the amount that is possible for you. But the earlier you start, the more you will contribute and the more you will have saved for your retirement.
At what age can you withdraw the balance from an IRA?
Once you reach the age of 60, you can withdraw the balance of your investment totally or partially. If you need the money sooner, you can withdraw it without penalties in case you are going to buy your first main residence, go to university, lose your home, suffer from a chronic illness, buy a computer, or have child support debt. Unemployment and disability are also withdrawal options without penalty.
You can begin to secure your retirement with your current paycheck today. For more information on IRA accounts, you can visit one of Oriental's branches or call 787-777-7777.