The IRS is very concerned about receiving their money today and is clearly not worried about the future when it comes to economic matters. When I’m forced to think about long-term financial planning and the big question mark that is the future, my face gets hot and I start hearing a faint buzzing sound in my ears. (That shouldn’t be a problem if you get a Roth IRA, however, because you’ll pay taxes on that money at the beginning, and then forgo taxes later). 4 Answers. I was wondering, which one should i get? So I understand completely if the question “Should you get an IRA?” makes you cringe a little inside. Restrictions on what you can deduct are based on income limits. So my economics teacher said he advises for my class of seniors to get an IRA account so we could build up our money for retirement. So, I tend to spread out my risk. A custodial Roth IRA allows you to put money away for your child if they earned income. When you are in your twenties, you have time to ride out the market, and you should invest more aggressively. There’s also no age limit to funding a Roth IRA. A traditional IRA can be a good option if you are looking to lower your taxable income. A traditional IRA can be a good option if you are looking to lower your taxable income. Of course, you need to be doing your best to lighten your debt, but squirrelling away a few hundred dollars here and there in an IRA now could really help you in the long run. You can go to your bank, and get their information, no risk for information. If you switch jobs before your employer’s contribution is fully “vested,” then you will take all of your own contribution with you, but you may only get a portion of your employer’s. For example, you can withdraw money from an IRA without penalty if it’s going to pay for college, if you’re purchasing your first home, if you’re faced with unforeseen medical expenses, or have a disability that prevents you from working. If you have the cash on hand, it can save you a lot in taxes in the future, but if you don't it may be easier to just roll it into a traditional IRA. Earning income from employment is the primary determining factor in your … Elizabeth Carlassare of the Money Girl podcast writes, “For most everyone, opening an IRA at a brokerage and mutual fund company makes good sense.”. However, your investments should grow more conservative over time. Most people know there are tax benefits to opening an IRA account, but few understand how many benefits there are, and how powerful they can be in the cause of saving money for retirement. Finally, with a Roth IRA, you can leave the money in your IRA for as long as you’d like, while a traditional IRA requires that you start pulling out money when you’re 70 ½ years old. An IRA will give you more control over your investments than your 401(k), and, if you get a Roth, you’ll be setting up a future in which you’ll have at least some funds available upon retirement that won’t be taxed. All rights reserved. With both types, your money isn’t taxed while it’s in the account, but the primary difference between the two lies in how you pay taxes on the money going in and coming out. These options offer more potential growth for your investment, then you would get if you opened the IRA with CDs. If you don't have access to a 401(k) retirement account through your workplace, the next best thing may be an IRA. It can be difficult to choose between a traditional IRA and a Roth IRA. 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