We can help you understand the available options for funding your retirement.
We provide savings and investment strategies designed to help you gain confidence about your retirement, including contributory Traditional and Roth IRAs, rollovers, Roth IRA conversions and more.
For most of us, achieving financial security throughout retirement is the ultimate goal. A disciplined and well-diversified retirement strategy can be designed that considers your current financial situation as well as your long-term goals. U.S. Bank and U.S. Bancorp Investments can provide products and services to help.
There are different types of IRAs to choose from to save for retirement, each with their own set of rules and potential tax advantages. U.S. Bank and/or its affiliate U.S. Bancorp Investments can assist you with the following types of IRAs:
All individuals with earned income can contribute to a Traditional IRA and may benefit from tax-deferred compounding of potential earnings. Some who meet income requirements can make contributions that are deductible from current taxes. Please consult with your tax advisor and financial professional for details.
A Traditional IRA may be a good choice if you:
Roth IRAs offer the power of tax-free compounding of potential earnings making them an alternative for many investors who qualify to make contributions (based on income limits). If holding period requirements are met, all earnings that accumulate in a Roth IRA can be withdrawn on a tax-free basis.
A Roth IRA may be a good choice if you:
To keep your retirement goals on track, use our calculator to estimate how much money you may need and when you can retire.
You may gain flexibility and control by rolling over, converting or consolidating your existing retirement savings plans and accounts.
Individuals often roll over money from their 401(k) or 403(b) plan into an IRA after leaving an employer. To help preserve tax-advantaged growth of earnings and gain better control of your retirement assets, you can rollover retirement savings from workplace plans of former employers into Traditional or Roth IRAs.
If you have money accumulated in a Traditional IRA or workplace savings plan, consider converting some or all of those assets to a Roth IRA. At the time of the conversion, taxes are due (at ordinary income tax rates) on all pre-tax contributions and earnings. Once converted to a Roth IRA, all earnings can accumulate on a tax-free basis (if holding period requirements are met), giving you more flexibility to manage your cash flow in retirement.
Keeping track of different IRA accounts with multiple institutions can be a challenge. It may be beneficial to consolidate those assets into a single IRA account. It can make it easier to manage the investments in your IRA and to take voluntary or mandatory distributions from the account in retirement.
Small business owners and self-employed individuals may get tax-advantaged retirement savings opportunities with SEP and SIMPLE-IRAs.
SEP-IRAs help self-employed individuals and small-business owners have access to a tax-deferred vehicle when saving for retirement. The SEP IRA allows you as the business owner to make tax-deductible contributions to an individual retirement account on behalf of each eligible employee (including yourself). Contributions are directed into a Traditional IRA. You have the flexibility to make contributions that may be substantially larger than those allowed in an individually-owned IRA and you can generally take the funds from your SEP plan with you when changing employers.
A SIMPLE IRA lets companies that have 100 or fewer employees offer a tax-advantaged retirement plan, funded by employer contributions and elective employee salary deferrals. You can make pre-tax contributions from your compensation into your account. Employers can also make tax-deductible contributions to each eligible employee’s account.
IRAs can be funded with a variety of asset types. Our financial professionals can help you choose the options that are right for you.
Why should I consider contributing to an IRA?
An IRA (Individual Retirement Account) is designed for those who don’t have the option of saving in an employer-sponsored retirement plan or who recognize the need to supplement their employer-sponsored plan at work with an additional option. An IRA is an account owned in your name, so you maintain control over the assets including making choices of how to invest the money in the account. An IRA also offers potential tax advantages. Some individuals will qualify to make contributions that can be deducted from current taxes. Earnings in all types of IRAs can grow with taxes deferred. Roth IRAs offer the potential to qualify for tax-free withdrawals.
How much can I contribute to an IRA?
Contributions can only be made if you have earned compensation in the year in which you plan to make your contribution. For the 2016 tax year, you are allowed to contribute up to $5,500 ($6,500 for those age 50 and older) to a traditional IRA, or 100% of your compensation, whichever is less. To make contributions to a Traditional IRA, you must not reach age 70-1/2 before the end of the year. There is no age limit to make contributions to a Roth IRA, but the ability to make contributions is subject to income limits.
What is the deadline for making IRA contributions?
Contributions for a specific year must be made by the federal income tax filing deadline of the following year, generally April 15th.
Can I contribute to both a Roth IRA and a Traditional IRA in the same year?
Yes, provided that contributions to all IRAs do not in total exceed the legal contribution limit of $5,500 ($6,500 for those age 50 and older).
What is involved in converting Traditional IRA assets to a Roth IRA?
Virtually all individuals can convert a Traditional IRA to a Roth IRA regardless of their income level. The conversion is a simple process involving a modest amount of paperwork. When a conversion occurs, taxes are applied on all pre-tax contributions and earnings in that same tax year. The 10% early withdrawal penalty does not apply to dollars moved from a Traditional IRA to a Roth IRA. Individuals have the option to “re-characterize” all or part of a conversion (changing your mind and moving all or part of the converted amount back to the Traditional IRA) until October 15th of the year following the year in which the conversion occurred.
We’ll work with you to develop a plan that reflects your goals and dreams, and help you make informed choices about your future.
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Investment products and financial services are provided through U.S. Bank and/or its affiliate, U.S. Bancorp Investments.
This information represents the opinion of U.S. Bank and/or U.S. Bancorp Investments and is not intended to be a forecast of future events or a guarantee of future results. This information is designed to be educational and informative. It is not intended to provide recommendations, to provide specific advice concerning retirement accounts and investment planning, or to meet the needs of any particular investor. Investors should consult with their investment professionals for advice concerning their particular situations.
U.S. Bank, U.S. Bancorp Investments and their representatives do not provide tax or legal advice. Each individual's tax and financial situation is unique. Individuals should consult their tax and/or legal advisor for advice and information concerning their particular situation.
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