5 Facts That'll Make You Wonder Why Everyone Doesn't Have a Traditional IRA
An IRA may not be the most exciting investment in your portfolio, but it's certainly versatile. An IRA, or individual retirement account, is an investment account designed to help you tuck away money for your golden years. There are different types of IRAs, but here, I'm looking at the benefits of a traditional IRA.After retirement, most people see their annual income drop, and that's one of the things that makes an IRA so attractive. Depending on your circumstances, your annual contributions to an IRA may be fully deductible, meaning you don't have to pay taxes on that money until you begin making withdrawals.Traditional IRAs make perfect sense for investors who expect to earn less in retirement, thereby falling into a lower tax rate and paying lower taxes on the money they withdraw. While anyone can contribute to a traditional IRA, how much you can deduct from taxes depends on two things:Continue reading
An IRA may not be the most exciting investment in your portfolio, but it's certainly versatile. An IRA, or individual retirement account, is an investment account designed to help you tuck away money for your golden years. There are different types of IRAs, but here, I'm looking at the benefits of a traditional IRA.
After retirement, most people see their annual income drop, and that's one of the things that makes an IRA so attractive. Depending on your circumstances, your annual contributions to an IRA may be fully deductible, meaning you don't have to pay taxes on that money until you begin making withdrawals.
Traditional IRAs make perfect sense for investors who expect to earn less in retirement, thereby falling into a lower tax rate and paying lower taxes on the money they withdraw. While anyone can contribute to a traditional IRA, how much you can deduct from taxes depends on two things:
