Russ Jablonsky, AAMS Financial Advisor 739 Clark St., Medford 715 748 6366 FINANCIAL FOCUS Which IRA Is Right For You? (or 75 if you were born in 1960 or later), you must start taking taxable withdrawals â technically called required minimum distributions, or RMDs â from your traditional IRA. But if you have a Roth IRA, you wonât face RMDs and can essentially keep the money in your account indefinitely. If you donât need all the funds in your Roth IRA for your retirement, you can pass them on to your heirs. Ultimately, though, your income may determine which IRA is right for you. You can earn any amount and contribute to a traditional IRA, though if you exceed certain income limits, your contributions may no longer be tax deductible. If you and your spouse donât have a 401(k) or other retirement plan through your employers, you can make a full, deductible contribution to a traditional IRA regardless of your income. But you may not be able to contribute to a Roth IRA, or at least not make the full maximum annual contributions, if your income is above certain levels. Your tax advisor can explain these levels, which often increase from year to year. (In 2024, the most you can contribute to either IRA, depending on your income, is $7,000 per year, or $8,000 if youâre 50 or older.) Under some circumstances, you can convert a traditional IRA to a Roth IRA, though youâll need to pay taxes on the conversion. In any case, think carefully about your options and make the choices that are appropriate for your needs. The individual retirement account (IRA) is celebrating its golden anniversary. Created in 1974, this savings vehicle has helped millions of people build resources for retirement. And in 1997, the Roth IRA was introduced. But which IRA is right for you? Letâs look at the basic differences between the two IRAs. With a traditional IRA, you generally invest pretax dollars, so the more you put in, the lower your taxable income. Your earnings grow tax deferred, meaning you pay no taxes on them until you start taking withdrawals. (If you take withdrawals before you reach 591â2, youâll be subject to ordinary income tax and a 10% IRA penalty.) When you invest in a Roth IRA, your contributions arenât deductible, but they can be withdrawn at any time, tax- and penalty-free. And you can typically withdraw your earnings on these contributions tax free once youâre 591â2 and youâve had your account at least five years. (If you donât meet these conditions, withdrawals of earnings are subject to income taxes and the 10% penalty.) So, are you better off by taking the immediate tax break offered by a traditional IRA or the long-term benefits of tax-free withdrawals available with a Roth IRA? If you think youâll be in a higher tax bracket when you retire, you might want to consider a Roth IRA, especially if you have a long time until retirement. This will give you more opportunities to put away funds that can be withdrawn tax free. Conversely, if you think you might be in a lower tax bracket upon retirement, you might lean toward a traditional IRA, as youâd get the tax benefits now, when youâre in a higher bracket, and can eventually make your taxable withdrawals when youâre in a lower one. Hereâs something else to keep in mind: Once you turn 73 This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC 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. Making Sense of Investing 161023 Russ Jablonsky, AAMS Financial Advisor 739 Clark St., Medford 715 748 6366 FINANCIAL FOCUS Which IRA Is Right For You? (or 75 if you were born in 1960 or later), you must start taking taxable withdrawals â technically called required minimum distributions, or RMDs â from your traditional IRA. But if you have a Roth IRA, you wonât face RMDs and can essentially keep the money in your account indefinitely. If you donât need all the funds in your Roth IRA for your retirement, you can pass them on to your heirs. Ultimately, though, your income may determine which IRA is right for you. You can earn any amount and contribute to a traditional IRA, though if you exceed certain income limits, your contributions may no longer be tax deductible. If you and your spouse donât have a 401(k) or other retirement plan through your employers, you can make a full, deductible contribution to a traditional IRA regardless of your income. But you may not be able to contribute to a Roth IRA, or at least not make the full maximum annual contributions, if your income is above certain levels. Your tax advisor can explain these levels, which often increase from year to year. (In 2024, the most you can contribute to either IRA, depending on your income, is $7,000 per year, or $8,000 if youâre 50 or older.) Under some circumstances, you can convert a traditional IRA to a Roth IRA, though youâll need to pay taxes on the conversion. In any case, think carefully about your options and make the choices that are appropriate for your needs. The individual retirement account (IRA) is celebrating its golden anniversary. Created in 1974, this savings vehicle has helped millions of people build resources for retirement. And in 1997, the Roth IRA was introduced. But which IRA is right for you? Letâs look at the basic differences between the two IRAs. With a traditional IRA, you generally invest pretax dollars, so the more you put in, the lower your taxable income. Your earnings grow tax deferred, meaning you pay no taxes on them until you start taking withdrawals. (If you take withdrawals before you reach 591â2, youâll be subject to ordinary income tax and a 10% IRA penalty.) When you invest in a Roth IRA, your contributions arenât deductible, but they can be withdrawn at any time, tax- and penalty-free. And you can typically withdraw your earnings on these contributions tax free once youâre 591â2 and youâve had your account at least five years. (If you donât meet these conditions, withdrawals of earnings are subject to income taxes and the 10% penalty.) So, are you better off by taking the immediate tax break offered by a traditional IRA or the long-term benefits of tax-free withdrawals available with a Roth IRA? If you think youâll be in a higher tax bracket when you retire, you might want to consider a Roth IRA, especially if you have a long time until retirement. This will give you more opportunities to put away funds that can be withdrawn tax free. Conversely, if you think you might be in a lower tax bracket upon retirement, you might lean toward a traditional IRA, as youâd get the tax benefits now, when youâre in a higher bracket, and can eventually make your taxable withdrawals when youâre in a lower one. Hereâs something else to keep in mind: Once you turn 73 This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC 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. Making Sense of Investing 161023
The top 30 essays were selected from among all 8th graders at Medford Area Middle School. Student essays placing 16 to 30 received a $20 Chamber Gift Certificate and recognition certificate along with a laminated copy of their essay. Honorees were (in alphabetical order): Sada Carstensen, Kinnley Gowey, Autumn Hartl, Braxton Larson, Graecyn Meseberg, Coraline Neitzel, Oliver Nuernberger, Steven Parkinson, Natalie Pomeroy, Melanie Richter, Renae Rymer, Avery Sigmund, Emma Steinke, Gracie Strama and Maggie Wallace-Szydel. BRIAN WILSON/THE STAR NEWS
Price County Administrator Paul Trimner explained his duties to members of the Taylor County ad hoc administrative committee on April 4. BRIAN WILSON/ THE STAR NEWS
Taylor County clerk Andria Farrand, along with chief deputy clerk Casey Belgram and additional members of the Board of Canvass sat down to cross reference April election results for accuracy at the courthouse on Tuesday afternoon. MANDEE ELLIS/THE STAR NEWS
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