Plan to Retire
Small steps you take today can better prepare you for retirement. It’s never too little or too late to start. Take advantage of retirement plans your employer may offer such as a 401K, a 403B program, or others such as TIAA-CREF (educators), and annuities. Contact your empl’s Human resources office for more information.
If you don’t have retirement plan at your job, or if you'd like to make maximize your tax advantages through a separate plan or if you are self employed, you should consider opening an Individual Retirement Account. Most financial institutions offer two types of IRAs: Traditional and Roth.
Should I open a Traditional IRA or a Roth IRA?
Traditional IRA is available to all wage earners, regardless of whether or not they currently participate in an employer-sponsored or government retirement plan. With the Roth IRA you cannot deduct your contributions and you receive all qualified distributions tax-free.
| Traditional IRA | Roth IRA | |
|---|---|---|
| Are contributions deductible? | Contributions may be tax deductible depending on AGI and your participation in a qualified retirement plan. |
Contributions are not tax deductible but can be taken out tax free and penalty free at any time. |
