Perhaps one of the most beneficial investments for a person’s future is an Individual Retirement Account or an IRA. These investments/savings accounts have been around for many years and have a number of benefits that can help anyone looking to save for the future. Whether it’s the average person trying to save for retirement or a wealthy investor, IRAs have something for everyone.
One of the biggest advantages to an IRA in Marysville CA is the tax benefits. A person can take any amount of money that they may have lying around, whether it’s $10,000 or a hundred thousand dollars, and they can open up an IRA account. However, due to IRS regulations, a person can only contribute $5500 per year to an existing IRA. If the person is 50 years of age or older, they can contribute up to $6500 a year. For people who want to invest more money into these accounts, they will typically open up multiple IRA accounts in order to invest more per year.
Where the tax benefits come in is that any money that is invested into an IRA in Marysville CA is tax deferred until the IRA has reached maturity. Then it will be taxed as income. In addition, the actual value of the IRA along with its returns on interest, which in some cases can be significantly high from year-to-year, are all free from capital gains taxes. This is important as the average IRA return per year can be anywhere from 7% to as high as 10% – in some cases, it is even higher, depending on the strength of the market that year. With multiple years of contributions, respectable returns on investment and the amount of money used to open the IRA account, this could equate to a significant amount of tax-free money.
There are also different types of IRAs. There are the standard IRAs and an alternative version which is called a Roth IRA. While these two IRAs are fairly similar in many respects, Roth IRAs do offer a few different benefits for different individuals. That’s why if you want to understand the differences between the two types of IRAs or you want to determine which IRA is going to be right for your situation, you may want to visit us and learn more about your options for an IRA.