An IRA Account: Effective and Smart
An IRA account is one of the most effective ways to save for retirement. Even if the future looks murky now, your retirement savings should be clear as day. Start putting money away today – and your future self will thank you. Talk to us about an IRA plan that works for your financial needs. Then rest easy knowing you’re covered, no matter what tomorrow brings.
What is an IRA?
Community Bank of Raymore is happy to help with your savings and retirement goals through traditional IRA and Spousal IRA options. That sounds great, right? Well, only if you are familiar with the how an IRA works. So, what is an IRA? In very simple terms: An IRA is an Individual Retirement Account that is self-funded, includes significant tax advantages and comes with a few basic regulations.
The Many Benefits of an IRA Account
Aside from fostering a healthy retirement, an IRA investment allows you a tax break on both accumulated growth and your annual contribution amount.
Growth and More Growth: The investments you make within your IRA portfolio will generate account growth and on top of that, IRA rates are competitive and higher than what standard savings accounts offer. It’s like getting to second base without even trying. And, after a the span of time, your IRA will round the bases and bring you into homerun status!
Tax Breaks: A traditional IRA allows for tax-deductible contributions and tax deferred growth. This means you can reduce your overall tax bill and you pay nothing on your IRA gains until withdrawal.
Traditional IRA Rules
While there is too much to cover in the fine print, there some basic IRA regulations worth noting.
The maximum IRA contribution per calendar year is set at $6,000 for 2021. After the initial $500 set-up, there isn’t a minimum or required minimum IRA contribution so think of it as, every little bit helps. If you are over 50, however, you can break this IRA rule and invest an addition $1,000 per year as a “catch-up” contribution. The magic rule for withdrawing IRA funds without penalty is 59 ½. Starting an IRA early will give you more time to accrue retirement funds but here at Community Bank of Raymore, we live by the motto, it’s never too late to start.