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When
determining which IRA is best for you, your choice should be based
on three factors:
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Eligibility
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Your particular tax situation
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When you plan to begin withdraws
The Traditional IRA allows tax-deferred growth and may give you an
"up front" tax deduction if you are eligible. All
withdrawals are subject to taxation at retirement. Your tax advisor
may recommend a Traditional IRA if you are eligible
to deduct your contributions, and you believe you may be in a lower tax bracket
at retirement when you make the withdrawals.
The Roth IRA grows tax-free and qualifying withdrawals are also
tax-free. However, the Roth IRA does not provide a tax deduction in
the year of the contribution. Distributions from a Roth IRA are not
mandatory and this gives additional flexibility during
retirement. The closer you are to retirement, the less time there is
for earnings in a Roth IRA to grow tax-free, and thus, the shorter savings
period reduces the advantages of the Roth IRA vs. the Traditional IRA.
Stifel Nicolaus, in partnership with your tax advisor, can help you
determine whether making contributions to a Traditional IRA, a Roth
IRA, or partial contributions to both a Traditional and a Roth IRA, is
most beneficial to you.
To speak directly with a financial advisor to help
you determine which IRA is best for you please
call 1-800-434-4015
Or, CLICK HERE
to order a Rollover Kit to help you decide which IRA is best for you! |
