Individual Retirement Accounts (IRAs)

D’Arcy Wealth Management offers multiple types of individual retirement accounts (IRAs) to help meet your retirement goals.

What is an Individual Retirement Account?

Individual retirement accounts (IRAs) are personal retirement savings accounts that offer tax benefits and a range of investment options. Many investors use IRAs as their common source of saving for retirement. 

Even those with access to employer-sponsored plans, such as a 401(k) or 403(b), can utilize IRA tax advantages to boost their savings and add flexibility to their portfolio.

Types of IRAs

Traditional IRAs, Roth IRAs, and Rollover IRAs are the three most commonly chosen individual retirement options. There are also variations of common IRA types including Inherited IRAs and Custodial IRAs. Each IRA has its own characteristics to evaluate when setting your retirement savings goals. 

Traditional IRA

  • Contributions may be tax deductible. 
  • Withdrawals of pre-tax contributions and earnings are taxed as current income during retirement.
  • No income limitations.

Roth IRA

  • Contributions are not tax deductible. 
  • Withdrawals are generally tax-free and penalty-free after five years and after age 59½.
  • Income eligibility limitations.

Rollover IRA

  • This process may result in more choices and lower fees than a 401(k).*
  • Evaluate your options to decide if rolling over to an IRA is right for you.
  • Funds can continue to grow tax-advantaged.

 

 

 

 

 

 

 

 

 

Inherited (Beneficiary) IRA

  • For those who inherit a Traditional or Roth IRA.
  • Tax-deductible contributions or IRA conversions aren't allowed.
  • Annual distributions or liquidation of the account within a certain period is required.

 Custodial (Minor) IRA

  • For children under age 18 who are actively receiving earned income.
  • Can be a Traditional or Roth IRA.
  • Funds could be used to pay for future needs, such as college or retirement.

 

 

 

 

 

 

 

 

 

 

 

Small Business Solutions

  • Choose from options for different-sized businesses.
  • 401(k)s and IRAs are available options.
  • Features range from high contribution limits to plan customization.

 

This tax information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, D’Arcy Wealth Management recommends that you consult with a qualified tax advisor or CPA. Depending on the type of account you have, there are different rules for withdrawals, penalties, and distributions. Please understand these before opening your account.

*A rollover of retirement plan assets to an IRA is not your only option. Carefully consider all of your available options which may include but not be limited to keeping your assets in your former employer's plan; rolling over assets to a new employer's plan; or taking a cash distribution (taxes and possible withdrawal penalties may apply). Prior to a decision, be sure to understand the benefits and limitations of your available options and consider factors such as differences in investment-related expenses, plan or account fees, available investment options, distribution options, legal and creditor protections, the availability of loan provisions, tax treatment, and other concerns specific to your individual circumstances.