Saving for retirement is one of the most important financial decisions you can make for yourself and your family. At Davenport we specialize in retirement planning for individuals and businesses and offer the guidance and investment solutions to help make your goals a reality.
If you’re not taking advantage of an Individual Retirement Account (IRA), you may be missing out on an exceptional opportunity to save for a secure retirement. The IRA contribution limit for 2016 is $5,500, and individuals age 50 or older can also make an additional $1,000 catch-up contribution.
There is a suitable IRA for virtually everyone. Depending on your income and personal situation, you may qualify for either one of the following accounts:
Roth IRA
- Contributions are not tax-deductible, but your money can accumulate tax-free.
- Tax-free and penalty-free withdrawals of annual contributions may be made at any time.
- Tax-free and penalty-free withdrawals of earnings may be made after five years…
- upon reaching age 59½
- for purchase of a first-home (up to $10,000)
- in case of death or disability
- There’s no requirement to begin taking distributions at age 70½ — you can even continue making contributions if you’re still working.
Traditional IRA
- Contributions may be tax-deductible depending on your earned income.
- Your savings benefit from tax-deferred growth (withdrawals are subject to tax).
- Penalty-free withdrawals are available for post-secondary education, first-home purchase (up to $10,000) and certain medical expenses.
Also, if you’re not sure where you stand toward reaching your retirement goals, establishing a Davenport IRA Rollover account can help you get a consolidated view. Benefits include:
- Simplified record keeping
- Ease of setting asset allocation and periodic rebalancing
- An experienced Financial Advisor to consult on progress towards your goals
- Access to professional investment management and monitoring
To learn more about how we can help you plan and maintain a secure retirement, please contact us today.
Davenport & Company is a financial services firm and does not provide tax or legal advice. Please consult your professional account or legal advisors prior to acting on any information provided by us that may have an effect in these areas.
There may be fees associated with establishing and maintaining an IRA. Be sure to consider all your available options and the applicable fees and features of each before moving your retirement assetsInformation has been complied form sources believed to be reliable: however, Davenport does not guarantee the accuracy or completeness of the information presented.