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Quick Facts About IRAs

While an IRA may have a lower annual contribution limit (2017: $5,500; $6,500 age 50 or older<1>) than a workplace-sponsored retirement plan, opening an IRA can provide an opportunity to help diversify your retirement assets. An IRA offers certain benefits that are generally not available in a 401(k), such as:<2>

  • Lower cost
  • Larger spectrum of investment options
  • Flexible options for penalty-free distributions prior to age 59½
  • Roth IRA does not require distributions after age 70½
  • Roth IRA offers “tax diversification” to help eliminate tax liability for a portion of retirement income

Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions.

1 IRS. Nov. 21, 2016. “Retirement Topics – IRA Contribution Limits.” https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits. Accessed Jan. 31, 2017.

2 Sheyna Steiner. Bankrate.com. 2017. “9 common misconceptions about IRAs.” http://www.bankrate.com/finance/retirement/common-misconceptions-about-iras-1.aspx. Accessed Jan. 31, 2017.

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