retirement accounts


Expand the description and view the text of the steps for this how-to video. Check out Howcast for other do-it-yourself videos from Real4Reel and more videos in the Retirement Planning category. You can contribute too! Create your own DIY guide at www.howcast.com or produce your own Howcast spots with the Howcast Filmmakers Program at www.howcast.com It’s never too early — or too late — to start saving for your retirement. To complete this How-To you will need: An investment provider Money to contribute Step 1: Know your rights Realize that even if you are already contributing to your company’s 401(k) plan, you are free to establish an individual retirement account, or IRA, as well. Step 2: Think about a Roth IRA Weigh the advantages of a Roth IRA. Taxes are taken at the get-go so you can withdraw money tax-free in your golden years. You may remove money, penalty-free, before age 59.5 for certain reasons, like buying a home, you may keep your money in it as long as you like, and you may continue paying into it past age 70.5 if you have earned income. Step 3: Consider an IRA Consider a traditional IRA, which lets you defer paying taxes on the money you invest until you start withdrawing it at retirement. You can’t contribute to an IRA past your 70th birthday, and you must begin taking distributions six months after that. Tip: To qualify for a Roth IRA, your modified adjusted gross income can’t exceed a certain amount. Check the Internal Revenue Service website (at irs.gov …