Get All the Answers on Traditional and Roth IRAs

Because the retirement landscape has changed dramatically in recent years, people are concerned about how much to save and where to invest. One thing is certain, individuals and couples need to make sure they have a plan in place for their retirement.

One important savings vehicle you can fund is the Individual Retirement Account (IRA). IRAs are easy to set up and maintain and there is no minimum age requirement, so even those who are young and have earned income are eligible to open an IRA (Traditional or Roth). Even if you participate in an employer’s 401(k) plan, you may still be able to contribute to an IRA (check with your tax advisor). Let’s take a look at two of the IRA options that are available.


The Traditional IRA allows for contributions to be made with pre-taxed, earned income. This can lower the amount of taxes you owe each year.

Traditional IRA Advantages and Benefits

-  The contributions you make to a Traditional IRA grow income tax-deferred.

-  If you qualify for and need tax deductions now, a Traditional IRA may be best for you.

-  A Traditional IRA also may be to your benefit if you will be in a lower tax bracket when you retire and can withdraw your money at a lower tax rate.

- The 2015 contribution limit is $5,500 or $6,500 if you are over 50.

-  You can make withdrawls for certain medical expenses, and you can withdraw up to $10,000 for the purchase of a first home. If you become disabled, you can withdraw funds.

-  IRA funds will pass to your beneficiary in the event of your death.


With a Roth IRA, money is taxed before it goes into your account, and there are no taxes on earnings. Roth IRA Advantages and Benefits

You pay no taxes when you withdraw the money—

-  Provided it’s been in the account at least five years, and you’re older than 591/2.

-  If you become disabled or you die, and it’s paid to your beneficiary.

-  The money is used for a first-time home purchase ($10,000 lifetime withdrawal limit).

- The 2015 contribution limit is $5,500 or $6,500 if you are older than 50.

-  You don’t have to begin withdrawing money at age 701/2 (a Traditional IRA requirement).

-  Contributions can continue as long as you continue to earn income.

-  Your earnings will continue to grow tax-free for as long as you like.

The more you understand and better you plan, the more likely you will be to achieve a successful retirement. Need more information on retirement planning? Go to the Mountain America website at www.macu.com.

For more information, visit www.macu.com or call 1-800-540-7670.

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