Investments & Insurance

Neighborly Advice

Individual Retirement Accounts

Time to take control. An IRA lets you control how your money is invested and preserves the tax-deferred treatment of your money. There are a number of investment options that we can utilize to help you create a well-diversified investment portfolio based on your tolerance of risk and that is aligned with your retirement goals.

Traditional IRA: Take advantage of tax-deferred earnings and possible yearly deductions.

Who this option is best suited for:

You are a taxpayer under the age of 70 with earned income, or you are a non-working spouse.
Deductible contributions are more important to you than tax-exempt distributions.
You would like to supplement your retirement savings in addition to your employer's retirement plan.
You do not contribute to another IRA or you want to split contributions between a Traditional IRA and a Roth IRA¹.

How it will benefit you:

Tax-deferred growth potential.
Penalty-free withdrawals for post-secondary education.
Penalty-free withdrawals for first-time home expenses (up to $10,000)
Penalty-free withdrawals for certain medical expenses.

Roth IRA: Take advantage of potential tax-exempt treatment of withdrawals.

Who this option is best suited for:

Your modified adjusted gross income is less than $160,000 for married taxpayers, or less than $110,000 for single taxpayers.
You have earned income.
You want to continue to make contributions after age 70 while working.
You don't want to take mandatory withdrawals after age 70 .
You prefer to have a tax-exempt funds available at retirement.
You do not contribute to another IRA or you want to split contributions between a Traditional IRA and a Roth IRA².

How it will benefit you:

Earnings can grow tax deferred.
Qualified distributions are income tax-free and penalty free after a five-year holding period if taken after age 59 .
Qualified distributions are tax-free and penalty free after a five year holding.
Qualified distributions are tax-free and penalty free if taken in the event of death or disability.

If you're not taking advantage of an IRA, you may be missing out on an exceptional opportunity to accumulate tax-deferred monies that you will be able to enjoy during retirement. We encourage our members to look ahead and plan for a strong financial future. And, we are ready to assist you - Contact a Northeast Investment Representative today.