Page 44 - February 2016
P. 44
ERI C
CACIO PPO
FINANCE
which one’s right for you?
Saving for retirement with IRAs –
untilt hey a repai d toy ou .
W hiley ou ma ybes avingfor reti reme ntth rou gh
W h e n y o u m a k e c o n t r i b u t i o n s , y o u r e d u c e y o u r t a x a b l e i n c o m e
yourempl oyer, canyoud om ore? Thean sw eris yes.
fortheyea r,so the d ol lars y ouc o n tri bute a re pre- t ax .T hos edoll a rs
Consider o peni ng an i ndivid ual retirem ent account
willnotbe tax eduntil youwi t hdraw the m fr omtheIR A .Theportion
(IRA), a personal savings plan which offers tax
ince ntive s to enco urage yo u t o save for retirement.
of any w ithdrawal th at repre se nts in ves tm e nt earn ing s i s alw a ys
You can stillcontr ibutetot hepla n un tilAp r il1 5and
taxe d.
it may h elp decrease 20 15’s ta xes.
How d o yo u choo se th e be st IR A to suit your
Roth IR As
nee ds ? W orkin g w ith aqual ified advi serisimp or- L i k e t r a d i t i o n a l I R A s , f u n d s h e l d i n a R o t h I R A e n j o y t a x - d e f e r r e d
t a n t . T h e F i n a n c i a l P l a n n i n g a n d E d u c a t i o n C e n t e r
growth .Bu tt he Rot hIR Aiso ft e n desc ribeda s th eop pos iteo fatra-
at C hi c ag o P a trol men’s Fe d era l Credi t U nion can ditional IRA be cau se other
key featu res diffe r. Ro th IRA
how toin v estb as e d onyourow n toleran c efo r ris kandinv e st ment
guide you through the proces s to hel p determine contributions a re n ever tax- ded uctibl e ( you can con tribut e only
p h i l o s o p h y . A f e w o p t i o n s :
meet the requirements for qualifying withdrawals. For 2016, you can
Tra ditio nalI R As
contribute up to $5,500 ($6,500 if 50 years or older) or your taxable
A traditional IRA is a type of personal savings plan that provides
specifieda m oun t.Wh ether or n otyoucan con t rib u tetoaRo th IRA
tax advantages to encourage you to save money for retirement. You
depends on your ann ual in come and inco me tax filing st atus.
can con tribu te u p to $ 5,500 ($ 6,5 00 if 50 years or older) or your tax-
able co mpen sa t ion forth eyea ri f yourcom pe ns ationw aslessthan
Spou sa lIR As
a s p e c i f i e d a m o u n t ( v i s i t w w w . i r s . g o v t o l e a r n y o u r n u m b e r . ) Y o u
may also be able to co ntribute u p to the s am e amo unt to a t radit ion-
al IRA for your spouse. Funds in a traditional IRA grow tax-deferred
If you file your federal income tax return as “married filing jointly”
andm eetc ertaino the rcon ditio ns, you canc ontribut e toanIRA CONTINUED ON PAGE 45
44 CHICAGO LODGE 7 ■ FEBRUARY 2016
a f t e r - t a x d o l l a r s ) , b u t w i t h d r a w a l s m a y b e c o m p l e t e l y t a x - f r e e i f y o u
compensation for the year, if your compensation falls under the IRS-
