Individual Retirement Accounts (IRAs)

Individual Retirement Accounts (IRAs)

Individual Retirement Accounts (IRAs) are a smart way to save for your future. With disciplined savings and tax advantages, an IRA can help you reach a more secure and comfortable retirement.  Affinity Investment Services¹ can help you choose the products best suited to your needs.

Why should IRAs be part of your retirement plan?

• Tax-deferred growth: your IRA earnings are not taxed each year, providing more growth potential.
• Accumulate more: your IRA will grow faster over time since earnings are compounded.
• Supplement a 401(k): you can contribute to an IRA to supplement your retirement savings even if you already have a 401(k).
• Numerous investment options: your IRA can include mutual funds, stocks, bonds, and CDs.
• Availability: anyone who works (or their spouse) can contribute to an IRA.

Traditional vs. Roth IRAs: Which is right for you?

Traditional and Roth IRAs have the same maximum annual contribution limits (for 2017 & 2018: $5,500/year under age 50, $6,500/year age 50 or older) and both have options for rollover from employee retirement plans, but there are a few differences to keep in mind.

Anyone who has a Traditional IRA, SEP-IRA, or distributions from many types of employer retirement plans can convert their savings to a Roth IRA.

Rollover IRAs

If you are retiring, leaving your current job for greener pastures or simply want to consolidate existing retirement accounts, you may have a range of options at your disposal. No matter where you are with your retirement plan, Affinity's Financial Advisors can help you choose what's best for your needs. Options may include:

• Roll over your existing assets into an IRA plan.
• Leave your assets in your former employer's plan, if allowed.
• Move assets to a new employer's plan, if allowed.
• Cash out your assets in a lump-sum distribution (may be subject to federal income tax withholding, and additional penalties).