Individual Retirement Accounts

An individual retirement account (IRA) may be an important part of your overall retirement plan. As long as you have earned income, an IRA can help you acumulate assets now so you may have them later in retirement. IRAs can include a variety of investments to help meet your goals (e.g., mutual funds, annuities, stock and bonds).

Tax advantages

An IRA offers certain tax advantages so they're appropriate for saving for retirement. And supplementing your other savings, like your 401(k) plan.

Greater confidence

Eighty percent of people age 30 to 54 don't believe they will have enough money for retirement.1 Contributing to an IRA may help create your nest egg.


Each year, dependent on your personal financial situation, you may be able to contribute to an IRA.

Traditional IRAs

When you put money in a traditional IRA, your contributions may be tax-deductible, plus any growth in your account is tax-deferred. You can access your money for any reason, including to pay for certain things, like a first home or educational expenses.2

  • Income tax-deductible contributions.3
  • Income-tax deferred growth.

Roth IRAs

With a Roth IRA, the money you put into your account is done with after-income-tax dollars. And because you've already paid taxes on the money you've put in, you won't have to worry about taxes when you withdraw it.4 Use our Roth IRA calculator to find out how much you could save before you retire.

  • Income tax-deferred growth.
  • No required minimum distributions at age 70½.

Which IRA may be best-suited for you?

A traditional IRA may be a good choice if you want to reduce your current income tax burden in exchange for paying taxes in the future. However, if you'd rather receive income tax-free retirement income and forego tax benefits now, you may want to consider a Roth IRA.

You may want to consider a …

Traditional IRA, if you: Roth IRA, if you:
Are less than 70½ years old and not currently covered by an employer-sponsored retirement plan. Have a 2014 modified adjusted gross income (MAGI)5 less than:
  • $114,000 (single filer)
  • $181,000 (joint filer)
Currently have earned income. Currently have earned income.
Think you may be in a lower tax bracket in retirement. Think you may be in a higher tax bracket in retirement.
Don't think you'll need to take money out of your account until retirement. Want the flexibility to take money out whenever you want and for any reason.
  • Your contributions and conversions can be withdrawn income tax-free.4
  • Your earnings, however, may be subject to taxation and penalties (if withdrawn prior to age 59½).
Want or need to start withdrawing from your account between ages 59½ and 70½. Want your account to have growth potential as long as possible without being required to start withdrawals at a certain age.
Would benefit from a potential immediate federal income tax deduction. Would benefit from qualified distributions that are free from federal income tax in the future.

Rollover IRA

If you're changing employers, retiring, divorcing or your spouse has passed away, a rollover IRA lets you consolidate funds from income-tax-deferred retirement accounts. Talk to your financial representative and a tax professional to help you determine what's best for you.6

Member's Voice

"I know when we complete the planning for our retirement, I'm going to feel very confident. There's not going to be any surprises 20 years down the road."*