Individual retirement accounts are an alternative that we can use to save for our retirement. It has great tax advantages, they serve to represent a deduction in the income tax return and not pay taxes during the contract. They are designed with the objective of stimulating savings for our retirement, giving us the opportunity to generate income during our retirement.
Nowadays, human beings are increasingly occupied in seeing how we can generate income that can cover the needs of our family. However, we never think that the years pass and we will reach an age in which we can no longer have the same rhythm of life that we currently have. If we take the necessary precautions, when we reach our old age we will have the peace of mind that we can retire in a quiet way.
At Dulcinea Insurance we can help you better understand the individual IRA retirement accounts and so you can have the peace of mind to keep up with your pace of life without having to worry about your retirement. Call us at 786-910-9487 so that one of our agents can give you the advice you need.[toc]
What are IRA accounts?
The IRA accounts, known by their acronym in English, are individual retirement accounts. They are created with the aim of being able to plan our retirement in a simpler way placing all the savings in one place. This individual retirement account is very sold by banks and by life insurance companies in Florida.
Traditional IRA accounts can be deducted from our annual taxes. However, when we withdraw funds, these taxes will be charged. For many, it is a very effective retirement saving plan.
In essence, your money will grow without taxes. However, when it comes to extracting it, the federal government appears. Unfortunately, before age 59 and a half, you will not be able to withdraw your money. And if you decide to do it, it will cost you 10 percent more than what was agreed at the beginning. Another fact is that after 70 and a half you will no longer have the possibility of making more contributions.
What does the Roth IRA retirement plan mean?
Roth IRA accounts or what are the same, non-deductible personal retirement accounts are attractive. With the Roth IRA retirement plan you will have the option to receive non-taxable income in the future.
You can also enjoy more flexibility related to other retirement plans. It even shows better advantages than the traditional IRA retirement plan. For example, with Roth IRA you can extract from the original contributions at any time.
The main difference between the traditional IRA and the Roth IRA is that the first Yes is tax deductible, but it is not tax free. While, the Roth IRA is Not tax deductible, but Yes it is tax free.
At what age can money be withdrawn from individual retirement accounts?
With the IRA individual retirement accounts we can start anytime. However, we will not be able to withdraw the money before the age of 60. Otherwise we would have a 10% penalty on the amount of the withdrawal. This penalty is in addition to the taxes that are charged for withdrawing the money.
There may be exceptions if the taxpayer makes the withdrawal for the following circumstances:
- Loss of work.
- Payments for the university education of the children.
- Incapacity or death.
- Transfers to other IRAs.
- Home repairs in case of an earthquake, hurricane or fire.
- Need to cover medical expenses due to chronic, severe or degenerative diseases.
What are the types of retirement accounts?
When we think about saving for our retirement, the best option to consider is the individual IRA accounts. Almost anyone who has an income generated from his work can open an IRA. Individual retirement accounts have two different categories.
- Traditional IRA: You provide a potential growth of our savings with long-term deferred taxes. Our money will grow tax free until we withdraw the funds in our retirement.
- Roth IRA accounts: They are the best option for those who have the opportunity to pay taxes from the beginning and enjoy a tax-free retirement.
One of the biggest mistakes we make as a person is to leave the creation of a retirement plan for the last moment. This is one of the most crucial aspects of our life, mainly economically.
If we do not know how to make good financial decisions, our income level will decrease and in some cases we will have to depend on our family members, creating an environment of discomfort for both us and our families.
At Dulcinea Insurance we can help you create a retirement plan with individual retirement accounts. Call us at 786-910-9487 so that one of our agents can help you choose the individual retirement account that best suits your needs.
How does IRA account work? Individual retirement account
According to official data, since this year the IRA savings account brings interesting news. To give you a perfect idea of the topic, we propose the following example of the requirements to open an IRA.
You are single or main breadwinner and have a retirement plan available through work. And if you also have a gross income of less than $ 63,000, your contributions will be deductible.
If you earn more than that amount and less than $ 73,000, only a portion of your contributions will be deductible. Finally, if your income is above 73 thousand dollars your contributions will not be deductible. Except that you do not have a retirement plan available through your employer. This is one of the situations in the traditional IRA.
Differences between the IRA and the 401K retirement plan
Both are retirement saving plans in Florida. For many, these are the most used forms of money investment in the United States. The IRA is individual, while the 401K is for workers. The annual deposits of the IRA are limited to 5500 USD per year. On the other hand, the 401k retirement plan is 18500 USD.
Both are taxable when withdrawing money, with high percentages. Both penalize if the money is collected before 59 and a half.
From our point of view, the form of life insurance with savings is much better. Also known as indexed life insurance, life insurance with capitalization or universal life insurance, it allows for growth totally free of taxes. If you call us at 786-910-9487 we will help you for free with all the details.
How to apply to the IRA and Roth IRA retirement plans?
To access the services of an IRA you should only visit our Florida life insurance agency. The attention is free and agile. We advance you that you do not need to comply with any requirement to hire an IRA retirement plan.
The application process to the IRA and Roth IRA retirement plan is carried out throughout the year. You only have to decide for your future well-being and then you knock on the door. We wait for you, as always, willing to help you until you leave pleased.
An individual retirement account is a very good option to prepare for the future. Remember that at the time of retirement you will receive approximately 40% for social security of what you received in your working age.
How to contract these retirement plans in the United States?
Hiring such retirement funds is a very simple fact. Maybe you think that you will get caught up in the bureaucratic ways and then you will not have the expected benefits.
That will be quite the opposite. If you select the IRA and Roth IRA retirement plans, your financial stability will be guaranteed when you have to stop working.
We are a team of highly trained professionals to successfully complete your application process. The most important thing is that you realize the advantages of the IRA and Roth IRA retirement plans.