IRAs

New Generations offers both Traditional and Roth Individual Retirement Accounts.

Traditional IRA Features

  • Monthly dividend earnings, tax-deferred (see rates)
  • No monthly maintenance fee
  • Insured by the federal government to at least $250,000
  • Eligible if under 70.5 years of age and earn compensation (or married to spouse earning compensation)
  • May be tax deductible
  • May qualify for saver’s tax credit of up to $1,000
  • Potential penalty and taxes for early withdrawal

Roth IRA Features

  • Monthly dividend earnings, tax-deferred (see rates)
  • No monthly maintenance fee
  • Insured by the federal government to at least $250,000
  • Eligible if earning compensation within Modified Adjusted Gross Income limits
  • Earnings and distributions may be tax-free
  • Potential penalty and taxes for early withdrawal

This feature comparison is intended to give you a general overview of the main differences between Traditional and Roth IRAs. Once you determine which IRAs you can contribute to, the question of which one is right for you may come down to whether you want to save on taxes now or later. A Traditional IRA may make sense if you want a tax deduction now or you anticipate being in a lower tax bracket during retirement. A Roth IRA may be more fitting if you can afford to pay the taxes now in order to save on taxes when you retire.

Please call (804) 359-8754 and select option 4 for more information on Roth and Traditional IRAs, along with eligibility requirements. Or, Join now!