A Roth IRA is a retirement plan that permits you to withdraw accumulated earnings from your account without having to pay federal income taxes, providing certain requirements are met. You will have to pay taxes on income that you put into your Roth IRA, but from then on it grows tax deferred.
When you withdraw the money at retirement, it is tax-free income. Your
local agent can help you open a Roth IRA or convert your present IRA to a Roth IRA. He or she can create a plan that's just right for you.
A Traditional IRA from Indiana Farm Bureau Insurance allows earnings and deductible contributions to grow taxdeferred. That means you don't pay income taxes on the earnings and deductible contributions of your IRA until you begin taking withdrawals, usually after you retire and possibly are in a lower tax bracket.
The maximum annual contribution is $4000.* In addition, the maximum annual contribution amount is increased by $1,000 for individuals who have attained the age of 50 before the close of the taxable year.* You decide how much you want to contribute; and your funds are accessible at any time.**
*Based on current tax laws.
**IRS tax consequences, if applicable, still apply.
Are you a stay-at-home mom? Are you a working spouse who is not covered by an employer-sponsored retirement plan? Or, are you just taking some time off from work?
These are not reasons you should take a break from saving for retirement. You may qualify to contribute to a spousal IRA from Indiana Farm Bureau Insurance. Your agent can tell you if a spousal IRA is right for you.
