A long time funding option, IRA’s have evolved in recent years to become more viable. Here are some key things to know when exploring your IRA options:
- IRA annual contribution limits sat at $2,000 for decades, not adjusting for changes in inflation. About a decade ago they came to their sense and now increase limits by $500 increments based on inflation. Current contribution limits sit at $5,500 per year and $6,500 per year for individuals 50 and over.
- Traditional IRA’s, while intended for retirement, can also be utilized for a dependents college education to an extent.
- Many people think of Bank IRA’s invested in CD’s. The reality is that IRA is a tax qualified status and not an investment. Any number of investment vehicles can be utilized within an IRA.
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Always remember that while this is an investor education piece, this does not trigger or relate to trading activity on your account with Financial Future Services. This article is for informational purposes only and not intended as a recommendation. Each investors circumstances are different and a full review of you situation is necessary for a recommendation.
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