Knowing how to invest your money for retirement plan could be a tough call, reason being that there are so many different types of accounts. IRAs can be one of the advisable ways to compound long-term saving s for retirement especially if you don’t have a retirement plan with your employer. Irrespective of your marital status- single, married or the size of your business, there are a lot of beneficial IRA options that can help in achieving your retirement goals. If you are going through this post, there is high possibility that you are trying to find out whether you can invest in pure physical gold bullion or any other precious metals as the case may be using your retirement plan. There are different retirement plans, however you can make your choice from the list below.
Traditional IRA
This is a retirement savings account that does not incur taxes on your savings until you withdraw the savings at the age of 70 ½.
Unlike a taxable retirement plan, traditional IRA are tax deferred as a result of this interest and investments accumulate faster. Also, so far you are not enrolled in a different retirement plan through your employer, traditional IRA are tax-deductible. The highest yearly contribution you can put in a traditional IRA is $5,000 for a single person while for married couples it is $10,000. Traditional IRA can be opened through a bank or a broker.
Roth IRA
A Roth IRA is an individual retirement plan this account provides tax-free income whenever you remove your investment from the account at the age of 59 ½ which is unlike the traditional IRA.
Contributions made into a Roth IRA account are not tax deductible just like that of a traditional IRA. Stocks, mutual funds, money market accounts and certificates of deposits can be safely invested in a Roth IRA account. A major advantage of Roth IRA over the Traditional IRA is its tax free characteristics which is a big plus. Although the Roth IRA is tax deduction free, thousands of dollars in taxes are saved when you eventually withdraw your money for retirement.
Rollover IRA
A rollover individual retirement plan allows you to channel cash from a 401k, 403b, or IRA arrangement that is in existence.
In the event that you no more work for your employer, but still hold some amount of money in their 401(k) arrangement, a rollover IRA can be opened to move the money into the new account. Rollover IRA commitments are boundless, permitting you to move as much money as you need from your employee supported retirement plan. You can set up a rollover retirement plan through a bank or financier firm.