Types of IRAs

Individual Retirement Accounts or IRAs are retirement plans that provide many tax advantages for retirement savings. While Traditional IRAs offer the benefit of tax-deductible contributions, Roth IRAs offer the benefit of tax-free withdrawals. This means that though contributions made to a Roth IRA are not tax-deductible, withdrawals made once allowed are 100% tax-free.

Deciding which IRA is best for you can depend on many factors such as your current income, your anticipated retirement income and your age. Retirement Pathways can help you determine which type of IRA is right for you. We also offer assistance in Traditional to Roth IRA conversions or setting up Stretch IRAs that pay out to beneficiaries for years to come. It is important to include your tax advisor, or CPA in any tax related decision process.

Once the decision is made as to the type of IRA, the next important consideration is how much to add to your IRA. There are limitations by the government depending on your age and income. Those limitations can be found in the IRS Publication 590.


Securities offered through American Equity Investment Corporation. Member FINRA/SIPC. Check the background of this investment professional on FINRA’s BrokerCheck. 4222 Grant Line Road, New Albany, IN 47150. Investment advisory services offered through American Capital Management a State Registered Investment Advisor. Retirement Pathways, Inc. is independent of American Equity Investment Corporation and American Capital Management.