IRAs are an effective way for individuals covered by employer-sponsored retirement plans to supplement their retirement savings. Anyone can make IRA contributions up to the annual limit. For 2019, this limit is $6,000, plus an additional catch-up contribution of $1,000 for taxpayers 50 and older. For traditional IRAs, contributions are tax deductible in the year made. Taxes are deferred on both contributions and earnings until the year withdrawn. For Roth IRAs, contributions are after tax and withdrawals (if certain requirements are satisfied) are completely tax free, including earnings.
While everyone with income can contribute to an IRA, there are phase-outs for high earners. These phase-outs reduce or eliminate the ability to make deductible or Roth contributions. The phase-outs for deductible contributions only apply to individuals covered by an employer-sponsored retirement plan. The phase-outs for Roth contributions apply to all high earners.
Acumen Wealth Advisors, LLC® is affiliated with RPAG and utilizes their robust retirement plan consulting tools and resources to deliver enhanced value to plan sponsor clients. RPAG™, a wholly owned subsidiary of NFP (NFP Corp.), provides retirement advisors premier technology, systems, training, and resources through its practice management platforms.