Traditional IRA –Contributions to a Traditional IRA may be tax-deductible depending on your income, your tax filing status and whether or not you’re covered by an employer-sponsored retirement plan like a 401(k). The key benefit of a Traditional IRA is the annual tax benefits during your earning years.
Roth IRA – Contributions to a Roth IRA are not tax-deductible. The key benefit of a Roth IRA is that qualified withdrawals (made after retirement) are tax-free depending on the age of the account owner and length of time the account has been in place.
CONSOLIDATING RETIREMENT SAVINGS PLANS
Are you changing jobs or have retirement savings from a former employer? You may be able to consolidate your accounts and gain tax deferral benefits in the process. Ask your ERIE agent about transferring savings from a Traditional IRA or previous employer-sponsored retirement plan (like a 401(k)) into an IRA with Erie Family Life.
For more information on retirement planning options from Erie Family Life, IRA contribution limits or to schedule an appointment, contact your local ERIE agent today. Our agents can help you select a plan that will work for your budget and situation.2