IRA Retirement Accounts: Why They Are Beneficial
When it comes to establishing a retirement account, you've probably seen that you have many options to choose from. Choosing the one that's right for you can take some time and consideration, though. You might be thinking about investing in an IRA. In fact, IRAs make ideal retirement accounts for many people. Before you decide whether or not an IRA is the best option for you, it's helpful to understand the benefits. Here's a look at some of the benefits of an IRA retirement account.
IRA Eligibility Is Easy
One of the single biggest benefits of an IRA is broad eligibility. In fact, almost everyone can be considered eligible to open an IRA. There are no age restrictions for creating or contributing to an IRA account, and you just need to have an earned income to show eligibility to establish a fund.
Most financial institutions, likely including your local bank, offer access to IRA accounts. You can set up an account in minutes with a little bit of documentation and a signature or two. Additionally, you can manage the account yourself if you prefer, or you can work with a retirement and investment professional to handle it instead.
IRAs Can Reduce Your Taxable Income
Another great reason to consider an IRA is that these accounts are tax-deferred. Any money you contribute to the IRA is a pre-tax contribution, and you can deduct a certain amount of those contributions from your taxable income every year. You won't pay the taxes on that money until you actually withdraw it from the IRA to use during your retirement.
Alternatively, you could opt for a Roth IRA, which takes post-tax contributions. This eliminates your need to worry about the tax implications during your retirement. It's all about what you feel would be the easiest option for you.
IRAs Are Your Personal Accounts, Not Your Employer's
One of the biggest challenges that many people face is the loss of their retirement fund when they change jobs. If you have a 401k through your employer, you'll have to deal with transferring that account somewhere if you leave that job. And since that account is provided through your employer, you have very little control over what happens with it, even while you're employed there.
With an IRA, that's not a concern. An IRA retirement account is yours and yours alone. You open it up directly with the banking institution so you have control over what happens with it, and you don't ever have to deal with transferring it if you change your job.
These are some of the things that you should know about IRAs before you make your retirement account decisions. Talk with an investment professional today for more guidance on no fees IRA services.