By: Staff Reports | Gwinnett Citizen

For retirement: start early, contribute often

Planning for life after retirement can be an exciting thought, especially when you have big dreams in mind. However, nothing can dampen those retirement plans more than not having the funds to make your dreams come true.

Fortunately, there are some tools out there to help you achieve your goals. One of the best investment tools you can have is an Individual Retirement plan (IRA). This is an investment or savings account with specific tax benefits dependent on the type you establish. 

There are two very different options for an IRA and United Community Bank can provide the financial expertise and tools you need to determine which IRA is right for you and your family. Depending on your goals and income, you can choose from:

1. A traditional IRA, which offers tax deductions in the contribution tax year. Contributions are made tax-free and are paid on the back end or when you pull your money out of the account. 

2. A Roth IRA allows you to fund the account with after-tax dollars. In return for no up-front tax deductions, your earnings grow tax free and at retirement you pay no additional taxes on the money you withdraw. Contribution limits are dependent on your income. 

So, how much should you put in your IRA? According to United branch manager, Ginger Kilman, “The government does limit the amount you can contribute to no more than $5500 annually, if you are age 50 or under for both traditional and Roth. However, if you are over age 50, the limit is increased.” Keep in mind with a Roth IRA, the contribution amounts are also based on your income. Ginger says, “If you don’t have an IRA opened, do it today. If you do, contribute as much as you can each month.”

To learn more about your retirement options and opening an IRA, talk with Ginger Kilman or Nancy Cain at United Community Bank. You can reach Ginger in Snellville at 770-985-2337 or Nancy in Lawrenceville at 678-376-3013.

  (October 2016)