IRA Benefits

The benefits of an IRA cannot be understated. An IRA, either the Traditional IRA or the Roth IRA has advantages specifically designed to help you reach your retirement goals.

What is an IRA?

IRA stands for Individual Retirement Account*. It is a vehicle for investing that was originally created by the US government to aid working individuals with their retirement saving efforts.

Although, over the years, the amount you are able to contribute to an IRA per year has changed, the appeal has not. The tax benefits of contributing to an IRA have definite advantages for individuals in all tax brackets.* This is due in large part to the fact that IRA earnings are not subject to federal income tax until distributions (withdrawals) are made. The theory is that once an individual retires, they will be in a lower tax bracket, thus lowering their tax liability on an earned income. When IRA distributions are made, they are considered income, and taxes must be paid.

Online Banking and Your IRA

Online banking has made retirement planning easier than ever before. It's simple to open an IRA through an array of online banking portals that are easy to control. Opening an IRA through an Internet banking source enables you to view IRA activity 24/7 and gives you the ability to view up-to-the-minute activity on your IRA investments. In addition, many online banking accounts offer you a broad array of investment choices and the ability to adjust your IRA investments easily to reflect changing market conditions and activity.

Higher IRA Limits for Those 50 and Over

The government has instituted a "catch up" plan for those wishing to invest in an IRA who are over 50. They may be able to contribute more to their IRA's than other contributors. To date, those who will be 50 and over before the end of a taxable year are eligible to contribute an additional $1000 over regular limits.

The benefits of opening either a Roth IRA or a Traditional IRA cannot be emphasized enough. The time to start preparing for ways to supplement your retirement income is now. Regardless of the amount you choose to invest, beginning an IRA will reap rewards down the road. Most IRAs can be opened with as little as $1,000 and require no additional contributions. If you do choose to further fund your IRA, in most cases there is no minimum amount required.

* This information is not intended as tax or legal advice. Please consult with your tax advisor or attorney regarding your individual situation.

It's easy to sign up for online banking. Go to iGObanking.com, member FDIC, to begin your Internet banking today or call us at 1-888-432-5890.