Managing your traditional or Roth IRA each year is a powerful step toward building your retirement strategy. In 2025, you can contribute up to $7,000—or $8,000 if you're 50 or older (depending on your modified adjusted gross income). How might contributing to an IRA matter? It harnesses the power of compounding, where your earnings can generate additional earnings over time. The sooner and more consistently you contribute, the more time you give your savings the opportunity to grow. Even modest investments made early and regularly can enhance your retirement strategy. IRAs can be an overlooked part of a financial strategy. We can show you how to make the most of your IRA contributions. Every dollar you invest is a step toward financial independence. Need help getting started or adjusting your strategy? We're here to guide you. |
Remember, once you reach age 73, you must begin taking the required minimum distributions from a traditional IRA in most circumstances. Withdrawals from traditional IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Contributions to a traditional IRA may be fully or partially deductible, depending on your adjusted gross income.
And Roth IRA contributions are phased out for taxpayers with adjusted gross incomes (AGIs) above a certain amount. To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a 5-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawals can also be taken under certain other circumstances, such as the owner's death. The original Roth IRA owner is not required to take minimum annual withdrawals.
This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm.
| Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax. |
| A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply. |