With tax season just around the corner, now is the time to take advantage of tax benefits while putting money away for your future. Individual Retirement Accounts (IRAs) offer a number of solutions so that you can do both. Here’s how:
With Traditional IRAs, there is a tax deferral benefit whereby contributions may be tax deductible and earnings will grow tax-free until withdrawn at retirement age. Roth IRAs, on the other hand, do not offer a tax deduction up front, but do provide tax-free earnings at the time of withdrawal (provided that withdrawal occurs at or beyond retirement age).
Currently, you can contribute up to $5,000 a year to your Traditional or Roth IRAs. The money can be split between the two (if you have both) but cannot exceed $5,000 combined. If you are 50 or older, you can contribute up to $6,000 per year.
Bronco also offers Education Savings Plans and Health Savings Plans that have similar tax advantages. For a full explanation of our different IRA accounts and the benefits of each, visit www.welcomehome.coop and choose the “Long-term Investments” tab under “Products & Services.” Or stop in at any of our convenient offices and we’ll be glad to discuss which plan is right for you. But hurry. April 15th really is right around the corner!
