IRAs
Your most versatile retirement savings tool - whether you're just starting out or looking for additional ways to help your money grow.
Not FDIC-Insured. Not a deposit product. May lose value.
If you've heard people talking about IRAs and wondered what they actually are or whether you need one, you're not alone. That's why we're here: to cut through the jargon and explain the options for saving for retirement.
An Individual Retirement Account (IRA) is the best of two worlds: tax advantages* AND flexibility. That's because an IRA allows you to choose investments that match your goals while you keep building up your retirement fund.
Consider an IRA as a great investment resource if you are:
- Starting to think about that "someday" and you want to begin with a small sum of money
- In the midst of a job change and want a steady place to rollover your past contributions
- Getting ready to retire and want a simplified way to save
- Looking for other ways to save your hard-earned money
- ... these are just a few of the great reasons to start an IRA.
What is an IRA?
An Individual Retirement Account (IRA) is a flexible retirement savings tool that helps you save for the future while providing valuable tax advantages.* You can contribute money along the way, choose investments that fit your needs, and build savings that can support you throughout retirement.
What's the difference between Traditional and Roth IRA?
These are the two most common types of IRAs. Neither is universally "better" and your choice depends on your personal situation.
Traditional IRA
- Contributions may be tax deductible,* depending on your situation.
- Your money grows tax free* until you withdraw.
- Withdrawals in retirement are generally taxed* as ordinary income.
- Required minimum distributions (RMDs) apply later in life
It makes sense to open a Traditional IRA when:
- You want a possible tax deduction* today.
- You expect to be in a lower tax bracket* during retirement.
Roth IRA
- You pay taxes* on the money before it is added.
- Your money continues to grow tax free.*
- Qualified withdrawals in retirement are generally tax free.*
- There are no required minimum distributions (RMDs)
It makes sense to open a Roth IRA when:
- You want tax-free income* later in retirement.
- You expect your tax rate* to be similar or higher in the future.
Saving for Retirement Starts Wherever YOU Are
You don't need a 401(k) or employer-sponsored retirement plan to start saving for retirement. An IRA allows you to save on your own terms, whether your employer offers a retirement plan or not. If you already contribute to a workplace plan, an IRA can be a valuable way to supplement those savings and help you work toward your long-term objectives. The important thing is getting started.
Life Changes. Be Sure Your Retirement Savings Keeps Working for You
If you've changed jobs, retired, or received a distribution from a former employer's retirement plan, you may have options for rolling those funds into an IRA. A rollover can keep your retirement savings organized in one place while preserving the tax advantages* you've worked hard to build. It may also open the door to a broader range of investment choices and make it easier to stay focused on your vision for retirement.
Your IRA is More than Just an Account
One of the most common misconceptions about IRAs is that an IRA is an investment. In reality, an IRA is the account that holds your investments. Within your IRA, you may choose from a variety of investment options depending on your goals, timeline, and comfort level with risk. These options may include Certificates of Deposit (CDs), stocks, bonds, mutual funds, managed investment portfolios, and other investment solutions.
Understanding Potential Returns
Many people want to know what kind of return they can expect from an IRA. The answer depends on how the funds inside the IRA are invested. Investment returns are influenced by factors such as risk level, market performance, and how long your money remains invested. Rather than focusing solely on chasing the highest return, it's important to choose investments that align with your financial priorities.
Opening an IRA Is Easier than You Think
The process of opening an IRA is straightforward. It starts with a conversation to determine which type of IRA fits your situation. From there, we'll help you complete the necessary paperwork and fund your account through a contribution, a transfer from another financial institution, or rollover from an employer retirement plan. Most importantly, we'll be available to answer your questions along the way.
Let's Talk About Your Retirement Goals
You don't have to figure it out alone. Our retirement specialists are here to explain your options, answer your questions, and help you make informed decisions. No jargon. No pressure. Just guidance from people who are committed to helping you move forward with confidence.
Need More Details? Compare IRA Options
Learn the facts about these two options to help you understand which retirement account could work for you.
| Traditional IRA | Roth IRA | |
|---|---|---|
| Maximum yearly contribution (2026) | Lesser of $7,500 or 100% of earned income ($8,000 if age 50 or older) | Lesser of $7,500 or 100% of earned income ($8,000 if age 50 or older) |
| Income limitation for contributions | No | Yes |
| Tax-deductible* contributions | Yes. Fully deductible* if neither you nor your spouse is covered by a retirement plan. Otherwise, your deduction depends on your income and filing status.* | No. Contributions to a Roth IRA are never tax-deductible.* |
| Age restriction on contributions | No | No |
| Tax-deferred* growth | Yes | Yes; tax-free* if you meet the requirements for a qualified distribution. |
| Required minimum distributions during lifetime | Yes. Distributions must begin by April 1 following the year you reach age 73. | No. Distributions are not required during your lifetime. |
| Federal income tax* on distributions | Yes, to the extent that a distribution represents deductible* contributions and investment earnings. | No, for qualified distributions. For nonqualified distributions, only the earnings portion is taxable.* |
| 10% penalty on early distributions | Yes, the penalty applies to taxable distributions* if you are under age 59 1/2 and do not qualify for an exception. | No, for qualified distributions. For nonqualified distributions, the penalty may apply to the earnings portion. (Special rules apply to amounts converted from a traditional IRA to a Roth IRA.) |
| Includable in the taxable* estate of IRA owner at death | Yes | Yes |
| Beneficiaries pay income tax* on distributions after IRA owner | Yes, to the extent that a distribution represents deductible contributions* and investment earnings. | Generally no, as long as the account has been in existence for at least five years. |
Still Have Questions? We're Here to help!
Retirement terms like IRA, Roth IRA, and Rollover IRA get thrown around a lot. It's okay if you're not exactly sure what they mean or which option is right for you. You're not alone and we're here for you! We work by your side to explain things in plain language and help you make confident choices.
If you're looking for a way to save for retirement, an IRA is worth considering. Whether your employer offers a retirement plan or not, an IRA can provide tax advantages* and help you build savings for the future. The right choice depends on your financial situation, retirement timeline, and long-term plans.
It's easy to open an IRA whether you choose a Traditional IRA, a Roth IRA, or want to rollover your IRA. Typically opening an IRA includes:
- Choosing the type of IRA that fits your goals.
- Completing a short application.
- Funding your account with a contribution, transfer, or rollover.
IRA contribution limits are set by the IRS and may change from year to year. Your eligibility and contribution amount can also depend on factors like your income, age, and whether you participate in a retirement plan through your employer. If you're unsure how much you can contribute, our team can help you understand the current rules and determine what makes sense for your situation.
Leaving a job doesn't mean leaving your retirement savings behind. Depending on your circumstances, you may be able to roll the funds from your former employer's retirement plan into an IRA. This can help keep your savings together, maintain important tax advantages, and give you more investment choices.
If you've changed jobs, retired, or received a distribution from a former employer's retirement plan, you may have rollover options. By rolling over IRA distributions you can:
- Keep your retirement savings together in one place.
- Maintain tax-advantaged growth.
- Expand your savings options by diversifying your investments.
- Continue working toward your retirement goals.
You don't need to be enrolled in an employer retirement plan to open and IRA. If you do contribute at work, you can also open an IRA at the same time. Think of it as a way to supplement your workplace retirement plan. After all, it's great to have options when it comes to saving for your future.
Your IRA isn't the investment itself. It's the account that holds your retirement investments. Depending on your goals and comfort level, IRA funds may be invested in:
- Managed investment portfolios
- Stocks
- Bonds
- Certificates of Deposit (CDs)
- Mutual funds
- Other investment options
Since you can choose what to invest your IRA dollars in, you want your investment choice to reflect your goals, your risk tolerance, and your time horizon. That means your returns will vary depending on that choice. There are a range of options that we would be happy to help you understand and build a strategy that's right for you.
Retirement plans aren't just for large companies. We offer retirement solutions designed for small businesses and self-employed individuals, including:
SIMPLE IRAs - A retirement plan that allows employees and employers to contribute.
SEP IRAs - A flexible retirement option commonly used by self-employed individuals and small businesses.
SIMPLE IRAs - A retirement plan that allows employees and employers to contribute.
SEP IRAs - A flexible retirement option commonly used by self-employed individuals and small businesses.
Let us help you do the math.
Our comprehensive retirement calculators will help you crunch the numbers, so you get a clearer road map for reaching your financial destination.
Our team is your team.
When you work with SNBT Wealth Management, you don't work with ONE advisor alone, you work with our entire 20+ member team
Ready to start saving for retirement?
Whether you're opening your first IRA, considering a rollover, or deciding between a Traditional or Roth IRA, we're here to help you choose the option that best suits your needs.
Retirement Planning for Small Business Owners and the Self-Employed
Retirement plans aren't just for large corporations. Small business owners and self-employed individuals have several options available to help them save for their own future while potentially offering retirement benefits to employees. Choosing the right retirement plan depends on factors such as business size, contribution goals, and long-term objectives. Our team can help you compare your options and find a solution.
* Consult your tax advisor.