IRS retirement plans are a great way to save for retirement. By far, the most popular would be a Roth IRA. But, there are several others you can use to save for retirement. By using a Roth IRA, any growth is completely tax-free. So, you only have to pay taxes when you’re first contributing to them.
IRS Retirement Plans
The Irs Retirement Plans has several accounts to benefit working people. Besides the Roth IRA, they’ve also written guidelines for 401(k)s. They’re another self-directed retirement account, known for their tax benefits. After you’ve set one up, you can contribute pretax income to it. So, it won’t take as much out of your paycheck.
Even better, tons of employers match 401(k) contributions. So, you may get more than what you’ve put into it yourself. You have to limit how much is contributed each year, though.
IRAs tend to be more popular among self-directed investors. Even though you have to pay taxes first, they have several benefits. Once you’re ready to withdraw from them, there are no taxes involved. So, you only have to pay them once if you’re using an IRA account.
However, you may not use them if your household income is above $129,000. If your home has more than one earner, the limits are a bit higher. Still, you must be under them to open one.
Also, if you’re under 50 years old, you can only contribute $6,000 each year. Once you’re over 50, it goes up to $7,000 a year.
