Individual Retirement Accounts — IRAs

Retirement Facts

One out of every six elderly Americans is already living below the federal poverty line.

U.S. Census Bureau

Find Out Which IRA is Right for You

An Individual Retirement Account offers tax-advantaged savings towards retirement. The tax-advantages, contribution limits, and withdrawal limitations vary by product. Your WFS Financial Representative can assist you in determining whether a Traditional, Roth, or SEP IRA is the right account for you.

Traditional IRA

A Traditional IRA may be a good choice if you expect your tax rate to be lower in retirement than it is today. Generally a Traditional IRA, may allow you to make tax deductible, post-taxed contributions while deferring taxes until withdrawals in retirement.

Roth IRA

With a Roth IRA you make contributions with money you have already paid taxes on; however your future qualified withdrawals are tax-free, even on your capital growth. If you expect your marginal tax rate to be higher in retirement than compared to today, then a Roth IRA may be the right choice for you.

Simplified Employee Pension (SEP) IRA

A Simplified Employee Pension, or SEP IRA, is a tax-deferred investment option which allows small business owners, sole proprietors and those earning self-employment income to make tax deductible contributions towards their retirement savings. Employer contributions are made on a pre-taxed basis and taxes are deferred until withdrawals.