We give advice based on what's best for your retirement, not our own. Individual Retirement Accounts (IRAs)Earn +50 PointsWhat is This?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. Contact an Affinity Financial Advisor Traditional vs. Roth IRAs: Which is right for you?Traditional and Roth IRAs have the same maximum annual contribution limits (for 2014 & 2015: $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. Traditional IRA Roth IRA Contributions are tax deductible (certain limitations apply) Contributions are not tax deductible Earnings are tax-deferred (withdrawals will be taxed as ordinary income, future tax rate will apply) Earnings are tax exempt (free from taxes when withdrawn) No contributions after age 70½ Can contribute at any age Required minimum distributions after age 70½ No required minimum distributions Early withdrawal penalty before age 59½ (exceptions may apply) No penalty on early withdrawals of principal Available to everyone (restrictions on tax deductible contributions apply) Not available to everyone (single-filers with a max of $110k modified AGI for full contribution, married-filers up to $173k modified AGI for full contribution) Rollover IRAsIf 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).