Smith, Brown & Groover, Inc. can assist you with your investment decisions regarding your IRA’s and IRA Rollovers. We can also help you determine the type of IRA appropriate for you.
The traditional IRA is usually funded with pre-tax dollars. The money grows tax-deferred while invested. There is a 10% penalty for withdrawals prior to age 59 1/2. Required minimum distributions must be withdrawn after age 70 1/2. All normal distributions will be taxed as ordinary income in the year received.
The Roth IRA is funded with after tax dollars. The same contribution limits apply as in the Traditional IRA. The money grows tax-deferred while invested. The individual can start to take the money at age 59 1/2, but no mandatory withdrawals are required. There are no income taxes due on the disbursements from a Roth IRA.
Available for children under 18 years of age. You may place a maximum of $2,000 per child into an account that will grow tax deferred to be used for educational purposes. Withdrawals may also be tax-free if used appropriately.