IRAs
Whether your retirement is in a few years or a few decades, our Johnson Financial Group Financial Advisors team can help guide you through the advantages of an Individual Retirement Account (IRA) and how it may fit into your retirement plan.
Benefits
IRAs are an important part of any retirement saving and investment strategy. Contributing to an IRA can boost your retirement savings and may give you tax benefits. Your IRA options will vary depending on your income, access to a retirement plan at work and tax filing status.
Check the background of our investment professionals on FINRA's BrokerCheck.
Traditional vs. Roth IRAs
Traditional IRAs
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- If you've earned income and are younger than age 70 1/2, a Traditional IRA may be the best option.
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- Contributions are pre-tax and limits are set by the IRS.
- Deduct contributions from your income tax, so your tax liability may be less.
- Earnings grow tax-deferred.
- Withdrawals after age 59 1/2 are taxed as ordinary income.*
- Minimum distributions may apply once you reach age 70 1/2.
- Select from a wide variety of investment options.
Roth IRAs
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- If you've earned income below a certain threshold set by the IRS, a Roth IRA may be best for you.
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- Contributions are made after tax and limits are set by the IRS.
- Earnings grow tax-deferred.
- Qualified withdrawals are tax-free.**
- Distributions are not required during your lifetime.
- Great to use as an estate planning tool.
- Select from a wide variety of investment options.
*Withdrawls prior to 59 1/2 may result in a 10% IRS penalty tax in addition to current income tax.
**Qualified withdrawals are tax free (limitations and restrictions may apply). Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs.
Johnson Financial Group and its subsidiaries do not provide legal or tax advice. Please consult your attorney or tax advisor with respect to your personal situation.
Open. Fund. Invest.
Whether you are rolling over an existing retirement account or opening a new IRA, we are here to answer all of your questions.
Open an IRA
Choose between a traditional, Roth or rollover account. Not sure which to choose? Find an Advisor.
Fund your IRA
Make your first contribution, transfer other IRA assets or roll over your prior 401(k)s.
Invest
Choose how you want your money to grow. Need help? Give us a call at 888.769.3796
Related Resources
401(k) Savings
A 401(k) can be one of your best tools for creating a secure retirement.
CALCULATE Calculate your 401k Savings.
Changing Jobs
Changing jobs can be overwhelming. We want you to feel prepared. If you're making the transition to a new career, we can help you plan for the short and long-term financial impact.
LEARN MORE Learn more about what happens to your investments when you change jobs.
How to Protect Your 401(k) During COVID-19
These common questions and answers will provide you with guidance on staying the course and navigating your retirement goals.
READ MORE about how to protect your 401(k) during COVID-19.Frequently Asked Questions
If you’re changing jobs or planning to roll over your employer retirement plan, you can deposit your funds in another retirement plan or IRA within 60 days. Depending on your individual situation, you may have several options that allow you to keep the tax-deferred status of your retirement account.
Choosing to roll over your money directly to a traditional IRA means you’ll most likely avoid any tax implications while still enjoying the potential benefits of a tax deferred plan.
- Avoid tax implications and penalties
- Funds remain tax-deferred
- Large selection of investment choices
Your former employer may allow you to keep your retirement plan in place. However, you won’t be able to make any additional contributions.
- Avoid tax implications and penalties
- Funds remain tax-deferred
- Unable to make any additional contributions
- Choose to roll over your funds at a later date
You’ll want to know if your new employer accepts rollovers. The rollover keeps your retirement money in one account, which may make managing your money easier.
- Avoid tax implications and penalties
- Funds remain tax-deferred
- Combine retirement funds and grow your money through continued contributions
- Follow new employer retirement plan guidelines
If you choose to take a cash out option, you need to be aware of the numerous drawbacks.
- Income taxes and penalties
- May push you into a higher tax bracket
- Lose all future tax-deferred compounding of your money
Have Questions?
We're here to help.
Give us a call at 800.203.8766
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