If you don’t have a retirement plan through your employer, then you can open either a traditional or Roth IRA to plan for your retirement.
The traditional IRA gives you a tax deduction by reducing your taxable income, but retirement money is taxable when you withdraw from it later. The Roth IRA is not deductible, but it won’t be taxed later if you have the plan for at least 5 years.
The maximum contribution limit for an IRA in 2024 is $7,000 for those under age 50 and $8,000 for those age 50 or older. This limit applies to both Roth and traditional IRAs, and is adjusted annually for inflation by the Internal Revenue Service (IRS)
If you have further questions, please contact your local tax professionals at Meadville Tax Service 814-333-2488 or info@meadvilletaxservice.com.
