What is an IRA?

Retirement is probably one of the biggest financial goals you'll ever have. Whether it's just around the corner or still quite a few years away, Edward Jones can help you find the right strategies to save and stay on track. We can answer questions about how much you can contribute each year, and then help you create a savings strategy. And as you get closer to retirement, we can work together on a strategy on how and when to make your withdrawals.

IRA = Individual Retirement Account

"Individual" because only one person can own and contribute to an IRA. You and your spouse can each have one, but you can't share one. 

"Retirement" because that's what IRAs are designed for. There are rules to follow, and you may pay penalties if you take your money out before you reach a certain age.

"Account" because IRAs are given special tax treatment by the IRS. Unlike a savings account at a bank or a regular brokerage account, any growth inside a Traditional IRA is tax deferred.* In a Roth IRA, any growth is distributed tax-free.**

Learn more about IRAs

  • IRAs at Edward Jones – Not all IRAs are created equal. Edward Jones offers conveniences, such as direct deposit and RMDs right on your statement. And at Edward Jones you can also choose from a variety of investments: stocks, bonds, CDs, mutual funds, ETFs, UITs and more. And, of course, you'll always get the exceptional service we're known for when you work with your local financial advisor. 
  • Traditional IRA – A Traditional IRA is a tax-deferred retirement account. You save today and are taxed when you withdraw the money.* 
  • Roth IRA – In a Roth IRA you don't get any tax deductions for the contribution today but can withdraw the assets when you retire without paying taxes.**

Contact us today

To learn more about IRAs, schedule a time to meet with your local financial advisor.

Important Information:

*Early withdrawals are subject to ordinary income tax and a 10% penalty if you take a distribution before reaching age 59½.

**Earnings distributions from a Roth IRA may be subject to taxes and a 10% penalty if the account is less than five years old and the owner is under age 59½.

Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.

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