Start planning ahead and saving for your retirement in Las Vegas, NV Capital Corporation can help you set up an IRA. Learn more about retirement investment accounts and how you can put them to work for you and your goals for the future.
What’s An IRA?
Individual Retirement Accounts, or IRAs, are investment accounts that help you save for your retirement in a tax-advantaged way. Unlike with a regular savings account, your money can substantially grow while it just sits there. As long as the market continues to grow, your funds will increase tax-free until distribution.
Benefits Of An IRA
- Grow Your Money
- Receive Tax Deductions & Deferrals
- Choose From Numerous Investment Options
- Lower Your Adjusted Gross Income
- Lower Investment Fees Compared To A 401(k)
- Defer Investment Taxes Up Until Age 70½
IRA Vs. 401(k) – What’s The Difference?
A 401(k) is a tax-advantaged retirement plan that some employers offer their employees, whereas an IRA is a retirement plan you open on your own. If your employer offers a contribution matching plan, it may be more beneficial to opt for a 401(k) rather than—or in addition to—an IRA.
If you later change jobs or your employer stops matching the contributions, you may want to consider transferring the 401(k) funds into a rollover IRA. This allows you to conveniently continue to manage your retirement savings in a single account.
Types Of IRAs
There are several different types of IRAs. Each is associated with different pros and cons.
- Traditional IRA – Traditional IRAs are made with pre-tax dollars, meaning that you are typically eligible for tax deductions when you invest in them. The downsides of a traditional IRA is that you will be taxed on the money when it comes time to take it out, and you usually cannot withdraw money before age 59 ½ without paying a hefty 10% penalty.
- Roth IRA – With a Roth IRA, you’ll still pay taxes when you initially deposit the money, but you will be able to withdraw the savings tax-free after you retire. You can also withdraw contributions (but not earnings) tax-free and penalty-free before you reach retirement age.
- Rollover IRA – This type of IRA allows you to transfer funds over from a 401(k). It is a worthwhile option if you’ve changed jobs and would prefer to keep all of your retirement savings in one account rather than managing multiple 401(k)s.
- SEP IRA – A Simplified Employee Pension IRA is very similar to a traditional IRA, but it’s intended for self-employed people and small business owners. SEP IRAs allow you to contribute up to $57,000 per year instead of the $6,000 that traditional IRAs may limit you to.
Consider The Risks
Any investment involves some level of risk. That being said, it’s not smart to rely solely on your bank savings and Social Security after you retire, especially when the former could easily run out, and the latter could go away or become less accessible if Congress decides to change the laws.
Your money can continue to grow in an IRA as it sits there, and these funds can continue to grow even after you’ve retired because you don’t have to withdraw until age 70 ½. By diversifying your investments and seeking professional guidance from an investment company, you can minimize your financial risks and maximize gains.
IRA Accounts In Las Vegas
Don’t wait to open your retirement account. Contact NV Capital Corporation today. Our IRA brokers can help you start preparing your nest egg now.