Managing your traditional or Roth IRA each year is a powerful step toward building your retirement strategy. In 2025, you can contribute up to $7,000—or $8,000 if you're 50 or older (depending on your modified adjusted gross income). How might contributing to an IRA matter? It harnesses the power of compounding, where your earnings can generate additional earnings over time. The sooner and more consistently you contribute, the more time you give your savings the opportunity to grow. Even modest investments made early and regularly can enhance your retirement strategy. IRAs can be an overlooked part of a financial strategy. Every dollar you invest is a step toward financial independence. We're here to guide you. |
Remember, once you reach age 73, you must begin taking the required minimum distributions from a traditional IRA in most circumstances. Withdrawals from traditional IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Contributions to a traditional IRA may be fully or partially deductible, depending on your adjusted gross income.
And Roth IRA contributions are phased out for taxpayers with adjusted gross incomes (AGIs) above a certain amount. To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a 5-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawals can also be taken under certain other circumstances, such as the owner's death. The original Roth IRA owner is not required to take minimum annual withdrawals.
This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm.