Invest In you

It’s never too early to start planning for the rest of your life.

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Retire by design

Pssst…you wanna know a secret? All those retirees that you see cruising the Caribbean and going on European tours? They had a plan. They didn’t wait until age 65 to dream about traveling the world, and they definitely didn’t watch the world pass them by during their working years. No, those retirees knew they wanted to enjoy the good ol’ days before it was too late.

Whether your ideal retirement is sitting on the screened-in patio, watching Gene practice his putt while you play your neighbor, Beth, in Scrabble, or jumping from cruise to cruise, you can’t get there without planning ahead. We spend so much of our lives working and waiting for the weekends. Retirement is your time to truly reflect on the life you’ve built along the journey, and it doesn’t hurt to be able to do what you love once you’ve finally stopped punching the clock.

Ira basics

An Individual Retirement Account is a type of savings account designed to help you save for retirement while benefiting from tax advantages. These accounts are created to save for retirement based on tax-free growth or on a tax-deferred basis. A traditional IRA can be opened by anyone with earned income (no age restriction as of 2020). A Roth IRA can be opened by anyone with earned income, regardless of age, if their adjusted gross income is below IRA limits.

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Why invest in an ira?

Your employer-sponsored savings plan is a great way to put aside additional funds, but it isn’t the only way. It also isn’t the best way if you want to accumulate enough savings to live stress-free throughout retirement. That’s why IRAs are important pieces to your retirement plan as they allow you to supplement your current savings and receive tax breaks specific to these savings accounts.

As if that’s not enough to motivate you to plan ahead, a 2019 report from the Federal Reserve highlights the fact that 44% of non-retired adults don’t see themselves as on track for retirement. That’s a lot of people who aren’t ready to walk away from the job on time. We don’t want you to become another statistic–we’re here to help you avoid falling behind on your retirement plans.

Open an IRA with SunWest and we can walk you through the tax benefits, provide higher return rates, and set you on the path of financial freedom. Start planning your retirement adventure now, and save yourself major financial distress down the road.

Traditional Ira or Roth Ira?

One of the first questions you’re going to hear from any advisor is: Traditional or Roth? The right choice for you depends on your tax preference and your projected tax bracket during retirement, as well as eligibility based on income. Although there is no crystal ball that can predict the future, a tax advisor can review your specific life situation and give advice based on what will provide you the best advantage. The hardest part is getting started.

Traditional IRA

Traditional IRAs allow you to fund with pre-tax dollars and can reduce taxable income for that contribution year. This means you get upfront tax breaks and pay taxes when you withdraw.

Why go traditional?

  • Immediate tax benefits –contributions lower your taxable income for that year
  • Best route if you think you’ll be in a lower tax bracket during retirement
  • Earnings grow tax-free

Things to consider:

  • Contributions can be made with pre-tax or after-tax dollars
  • Withdrawals are taxed

Max annual contribution:

  • $6,000 per year, $7,000 per year for ages 50+

Withdrawals:

  • Withdrawals made before age 59.5 are considered an early withdrawal and may be subject to an IRS 10% Early Withdrawal Penalty
  • Minimum Distribution Requirement kicks in the tax year you turn 72
IRS withdrawal Limits

Roth ira

Roth IRAs are a great option for those that expect to be in a higher tax bracket during retirement. The contributions going into a Roth have already been taxed, so your withdrawals in retirement typically are not.

Why go Roth?

  • Best route if you think you’ll be in a higher tax bracket come retirement
  • Contributions have already been taxed, so withdrawals are tax-free

Things to consider:

  • No immediate tax benefit – does not lower yearly taxable income
  • Contribution eligibility is subject to your earned income

Max annual contribution:

  • $6,000 per year, $7,000 per year for ages 50+

Withdrawals:

  • No Early Withdrawal Penalty if your Roth has been open for 5 years or if you are 59.5 years or older at the time of the withdrawal



IRS contribution limits

Can i invest in both types of ira accounts?

Yes, as long as the total amount of your contribution does not exceed the maximum annual contribution requirements.

Can i temporarily take money out of my ira account?

Once a distribution is taken from an IRA, you have 60 days from the time the funds are withdrawn to replace the funds and avoid any associated penalties or taxes. This type of rollover can only be done once every 365 days in a branch. Tax withholding is not returnable unless the transaction is cancelled on the same day.


Open an IRA

The best IRA for you depends on your unique financial situation. While the idea of tax-advantaged retirement savings is the same for both accounts, there are significant differences between the two types.

Many people have multiple IRAs and a mix of the two types. Visit a branch to open an account today, or explore other savings options.

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