​Retirement Planning


An Individual Retirement Account (IRA) is a personal savings account into which you set aside money for your retirement. The tax benefits of an IRA vary depending on the type of IRA you have:

Traditional IRAs

  • A Traditional IRA is one in which you make annual contributions and/or rollover contributions.
  • Annual contributions may be tax deductible if you and your spouse are not participants in an employer-sponsored retirement plan or your income is below certain thresholds.
  • Income tax for rollover contributions is deferred.

Roth IRAs

  • A Roth IRA is one in which you make annual contributions and/or rollover contributions.
  • Certain income limits apply.
  • Annual contributions are not tax deductible, but gains on rollovers from other qualified plans are taxable.
  • Qualified distributions are not subject to federal income tax on withdrawal.

Please see this comparison of Traditional and Roth IRA features to help you decide which may be the better retirement savings vehicle for you.

Please note: IRAs carry certain tax implications Distributions are generally subject to ordinary income tax, and for traditional IRAs, there may be an additional 10% penalty tax if a distribution is taken before age 59½. If you are under age 70½ and have earned taxable income, you may be eligible to contribute to an IRA.

We do not provide legal or tax advice and the above information is not intended or written to be used as such. It was written solely to provide general information and support the sale of annuity products. A taxpayer cannot use it for the purposes of avoiding penalties that may be imposed under the tax laws. You should seek advice on legal or tax questions based on your particular circumstances from an independent attorney or tax advisor.

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