IRAs

An individual retirement account (IRA) is a tax-advantaged tool that allows you to set aside funds for retirement savings with tax-free growth or on a tax-deferred basis. The rules regarding maximum contributions for IRAs change each year, but there is an early-withdrawal penalty of 10% if you withdraw money from an IRA before the age of 59 ½.

The three most common types of IRAs are:

• Traditional IRA. The contributions are often tax-deductible, decreasing your taxable income, but withdrawals are then taxed upon distribution.
• Roth IRA. Contributions are not tax-deductible, meaning you are using after-tax dollars, and withdrawals are then tax-free upon distribution.
• Rollover IRA. If you have an employer-sponsored plan, such as a 401(k), you can take the contributions from that qualified retirement plan and roll it over into a traditional IRA.

Professional Management of IRAs

When it comes to investing in an IRA, financial experts believe that you may need up to 85% of your pre-retirement income in retirement. The retirement plan sponsored by your employer may not be enough. We can help you supplement your employer-sponsored savings plan by guiding you through your investment choices and determining if an IRA is right for you.

In our financial services division at Burnham & Flower, we are committed to building long-term client relationships by helping you achieve your financial goals before and after retirement. Through our knowledge, resources, and expertise, we work with our clients to develop custom, diversified investment programs. Our highly qualified team can manage your IRAs and assist you in reaching and maintaining your retirement goals.

For more information, contact Amber Howes at ahowes@bfgroup.com or 800.748.0554.