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2014 April Newsletter



Time to Prioritize Your Retirement Savings

We're pretty sure no one has ever said, "I wish I had waited longer to save for retirement." One effective tool for jump-starting your retirement savings is with an Individual Retirement Account, or IRA.

IRAs are common investment vehicles that provide tax advantages for your retirement savings. The two most common types of IRAs – Traditional IRAs and Roth IRAs – each offer different tax-related benefits.

Regardless of which IRA you choose, each type can provide you with certain tax advantages. Traditional IRAs allow you to make contributions to the account that are often tax-deductible; however, withdrawals made at the time of retirement are taxed as income. By contrast, contributions to a Roth IRA are not tax-deductible, but withdrawals from the account are usually tax-free so long as you don't make them too early. In this regard, the difference between a Traditional and Roth IRA can be simplified with a "pay now or pay later" analogy.

IRAs and Tax Deadline

Traditional IRAs have the added advantage of reducing your taxable income – it's the main reason why so many opt to open a Traditional IRA ahead of the April 15 tax deadline. By doing so, you can deduct your IRA contributions from your 2013 tax filings. The more you contribute to your Traditional IRA, the bigger your deduction; however, it's important to note that there is a $5,500 limit to the amount you can contribute (that limit increases to $6,500 if you're age 50 or older.)

To learn more about IRAs – including which type is best suited for your needs – talk to a representative at Citizens State Bank. They'll be happy to answer your questions, and can even help you open your own IRA. You can also find out more about IRAs by visiting the part of the IRS website that's devoted to them.

Start making your retirement a priority today. Because when it comes to saving for your retirement, there is no better time to start than the present.







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