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.
