Steps to Retirement
An IRA account is simply a retirement vehicle through which you can receive tax-favored treatment on withdrawals or contributions (depending on the type of IRA account you select). There is a wide range of IRA choices for you to select the one that best fits your individual needs. An IRA account is one of the first steps towards a successful and happy retirement. Value View Financial aims to make your retirement goals possible through personalized plans that are best for your specific situations and goals. Scroll down for the three most common IRA plans.
IRA Plans
Traditional IRA
A traditional IRA is a tax-deferred investment account that acts as a personal retirement fund for people with employment income. Contributions may be tax-deductible depending on your adjusted gross income and participation in an employer-sponsored retirement plan. Earnings can grow tax-deferred until withdrawal, thus giving your investments the opportunity to compound faster. At withdrawal, any amounts that have not already been taxed are taxed as ordinary income.
Roth IRA
The ROTH-IRA allows investors a newer option regarding retirement planning. As with a traditional IRA, you won't pay taxes on any earnings in your account while they remain there. But unlike a Traditional IRA, contributions are made on an after-tax basis.
Educational IRA (Coverdell ESA)
An Educational IRA is a trust or custodial account that is created for the purpose of paying the qualified higher education expenses of the designated beneficiary of the account. The account must be designated as an Education IRA when it is created in order to be treated as an Education IRA for tax purposes.