Hardge Financial

A traditional IRA is a domestic trust or custodial account that can be established by an individual in order to save money for retirement on a tax-deferred basis. And adding to the appeal of an IRA is that some contributions may also be deducted from your taxable income.

A traditional IRA is an extremely versatile and simple way to save for retirement. It is often used by those with no other tax-favored way to save for retirement. A traditional IRA also serves as the funding method for retirement plans, like SEPs and SIMPLEs, used by small business owners and the self-employed. The beauty of an IRA is it is an extremely easy way to save for retirement, with virtually every type of financial institution standing ready, willing, and able to set one up for you.

A Roth individual retirement account (IRA) is essentially a non-deductible traditional IRA. Roth IRAs are also generally subject to the same rules as traditional IRAs. Despite the many similarities, however, Roth IRAs do have a number of unique features and requirements such as: (1) Qualified distributions from a Roth IRA are not includible in income and, therefore, tax-free. (2) Contributions can be made to your Roth IRA regardless of your age. (3) There are no required minimum distributions that must be made from a Roth IRA. (4) Eligibility to contribute to a Roth IRA is subject to special limits.

If you have children or grandchildren, you no doubt have at least thought about how you were going to pay for their education. With private school and college costs rising at an alarming rate, worrying about the kids’ education is probably a more accurate description of what you’re doing. You can look into opening a 529 College Savings Plan where up to $4,000 of your contributions will help reduce your State Tax Liability (if your State allows it). Or you can look into a Coverdell Education Savings Account (CESA). Then there’s the educational credits offered on the Federal and State level in some cases.