An IRA, or Individual Retirement Account, is a tax-advantaged account designed to help individuals save for retirement.
Depending on the account type, contributions may offer tax benefits today or allow qualified withdrawals to be tax-free later.
IRAs can generally hold investments such as mutual funds, ETFs, stocks, bonds and CDs, giving investors more flexibility than many employer-sponsored plans.
Why Consider an IRA?
Tax Advantages
Traditional and Roth IRAs offer different tax benefits that may help with retirement planning.
More Investment Choice
IRAs often provide access to a broader range of investments than workplace retirement plans.
Retirement Flexibility
An IRA can be used alongside a 401(k), pension or other retirement savings accounts.
Explore IRA Type
Traditional IRA
Contributions may be tax-deductible, while withdrawals are generally taxed in retirement.
Disclaimer: IRA contribution limits, deduction rules and income thresholds can change. Current IRS guidance should be reviewed before making contribution decisions.
What Can Affect IRA Growth?
Contributions
Regular contributions can increase the amount available for retirement.
Investment Performance
Returns depend on the investments held inside the account.
Fees
Account and investment fees can reduce long-term returns.
Time Horizon
Starting earlier gives investments more time to potentially compound.
Withdrawals
Early withdrawals can reduce future growth and may trigger taxes or penalties.
Asset Allocation
The mix of stocks, bonds and other investments can affect both risk and return.
Who May Consider an IRA?
An annuity may be worth considering if you want more predictable retirement income or additional protection against outliving your savings.
Common Reasons
Saving beyond a 401(k)
Building tax-advantaged retirement savings
Creating future tax-free income
Consolidating old retirement plans
Broadening investment choices
Saving while self-employed
Supplementing pension or Social Security income
Benefits and Things to Consider
Benefits
Tax-advantaged retirement saving
Broad investment choices
Traditional and Roth options
Can complement a 401(k)
Rollover options available
Things to Consider
Contribution limits apply
Income limits may affect Roth eligibility
Early withdrawals may trigger taxes or penalties
Investment values can fluctuate
Required distribution rules may apply to some accounts
IRA vs. Other Retirement Accounts
IRA
Individual retirement savings with broad investment flexibility.
