If you are thinking of or have been setting aside funds to work toward that comfortable retirement in the future you probably have many questions – If you are investing in a 401(k), do you need an IRA too? And what is the difference between a traditional IRA and a Roth IRA? And which one is suitable for your particular situation? We are here to help you answer your questions and to assist you in achieving your goals.
Among many other things, saving for retirement requires careful planning, systematic savings and management. Contributing to a retirement plan has benefits you can enjoy today such as helping to lower your tax bill and watching your earnings grow tax-deferred. (Consult your tax advisor for more details.) Depending on what you select, many retirement plans also offer great flexibility, so your contributions can be invested to help you meet personal objectives.
Which IRA is best for you?
Traditional and Roth IRAs are both designed to help you save for retirement. With a traditional IRA, your contributions may be tax-deductible and can grow tax-deferred. With a Roth IRA, your contributions are non-deductible, but have the potential to grow tax free.
How Much Can I Contribute to an IRA?
You may contribute 100% of earned income to either a traditional IRA, a Roth IRA or both types of IRAs up to the annual contribution limit. The annual contribution limits for 2011 is $5,000 or $6,000 if you are 50 years of age or older.
Individual IRA Plans – Traditional IRA, Roth IRA
Employer Sponsored Plans – 401(k), 403(b), 457(b)
ASIA, its employees and financial advisors cannot provide tax or legal advice. Please consult your attorney or qualified tax advisor regarding your particular situation.