How Contributing to Your IRA Before April 17th Can Improve Your Financial Wealth
Never forget, it pays to save. This is particularly true with a savings account in North Las Vegas and when it comes to contributing to an IRA. With a traditional or Roth IRA contribution you get to enjoy a number of special tax benefits and give your money a chance to grow and mature. So long as you contribute to this before the deadline of April 17th, you can enjoy benefiting from the following key reasons:
IRA money works for you
Eligible taxpayers can contribute up to $5,500 to a traditional or Roth IRA, taxpayers 50 or older can contribute up to $6,500 a year. While this may seem like a significant amount of cash up front, it can mature significantly when left invested. For example, if a 35-year-old taxpayer invested the maximum $5,500 into their IRA at a 7% long-term compounded annual rate of return, that one contribution could grow to nearly $59,000 35 years later. That's an impressive return on one investment!
It's also important to note, while it’s best to invest in an IRA as early as you can, there is no age too late to start investing. Some people make investments every other year, others start early and stop after five to ten years to focus their financials on growing their family. Every individual has a different financial scenario. That's why at Clark County Credit Union, when you sign up for a savings account in North Las Vegas, we'll help you figure out the best contribution schedule for your situation.
You don't have to make one full contribution
The $5,500 IRA contribution limit can understandably feel like a significant, sometimes insurmountable sum of money. This is especially true for young people attempting to save and invest for the first time while also juggling student loans and other debts.
The good news is you don't need to make this total contribution at one time. With our savings account in North Las Vegas, we'll show you how you can automate your IRA contributions to have small amounts deposited weekly, biweekly, monthly, or on another schedule that works best for you. Making smaller, more incremental contributions to your IRA account can often be easier and less financially taxing than one sum investment.
You can enjoy a tax break
Your retirement investments and IRA contributions provide tax advantages.
With a traditional IRA contribution, you may deduct the amount of your contribution the year you make it (although deductibility is phased out at higher income levels) and growth earnings are tax-free. However, at age 70.5, there are mandatory minimum withdrawals with taxes paid from the account.
With a Roth IRA, contributions are made with post-tax money and are subject to income limits. They also grow tax-free but uniquely have no mandatory withdrawals at any age and withdrawals are tax-free.
Open a savings account in North Las Vegas
When looking to contribute to your IRA talk to the financial advisors at CCCU. They will discuss your different options and work with you to achieve financial success. Contact Clark County Credit Union at 702-228-2228 to open a saving account in North Las Vegas today.