Yes, it really is called a Traditional Individual Retirement Account (IRA). But there’s nothing old fashioned about how it works.? If you want an upfront tax deduction today, and you think your income tax rate will be lower when you retire, a Traditional IRA may be the IRA for you.? Its alternative, the Roth IRA, has distinct differences that may make it preferable in other situations.?
- No contribution restrictions based on income. If you have employment related income you can make contributions up to age 70? regardless of the amount of your income.??
- Upfront tax deduction. If you fall below a certain modified adjusted gross income (MAGI), you receive a tax deduction on the money you put in, which may put you in a lower bracket or help you qualify for other tax incentives.
- Maximum contributions. In tax year 2019, the most you can contribute yearly is $6,000; $7,000 if you are age 50 or older.?
- Income tax due on withdrawals. You pay income tax when you take the money out. If you are under 59?, you will have to pay income tax plus a 10% early withdrawal penalty unless you qualify for an IRS exception.?
- Withdrawal age requirement. You must start taking minimum withdrawals at age 70?.
- First-time homebuyer’s exemption. Up to $10,000 can be withdrawn for first-time homebuyer expenses without paying the 10% penalty. However, the money is taxable.
With one phone call, you can open any kind of IRA account. And get all kinds of help.?
IRA Mutual Fund
Using just one IRA account, you can access mutual funds from many of the best known investment firms.
Four globally diversified, managed portfolios to match your investment goals.
Traded Funds (ETF)
Four globally diversified, managed portfolios to match your investment goals. ?
Hi, there. You can open an IRA right now, and I can walk you through the details as we go.
This material is provided for general and educational purposes only; it is not intended to provide legal, tax or investment advice.? All investments are subject to risk.? We recommend that you consult an independent legal or financial advisor for specific advice about your individual situation.The tax information herein is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.?Securities offered through Voya Financial Advisors, Inc. member SIPC.Neither Voya nor its affiliated companies provide tax or legal advice. Please consult with your tax and legal advisors regarding your individual situation. ?