Those financial acronyms can be confusing! This blog is your cheat sheet to understanding accounts like:
401(k): An employer-sponsored retirement account where (often) the company matches your contributions.
IRA: A retirement account where you're able to invest pre-tax dollars.
HSA: Triple tax-advantaged healthcare savings (with the right plan!).
Roth IRA: Invest after tax dollars and grow tax-free for future spending.
Still feeling overwhelmed? We can help you create a personalized plan!
Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.
A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings 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. Limitations and restrictions may apply.
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