FAQs About IRAs

IRA stands for Individual Retirement Accounts, and no matter how young you are, it’s never too early to get started. If you aren’t familiar with IRAs, now is a great time to learn more about them and even get started on your road to retirement savings. Here at the Wallstreet Group, we know how important it is to save for your future and to help you feel more empowered, we have answers to a few frequently asked questions about IRAs.


What is an IRA?

As mentioned above, an IRA is an individual retirement account, and the goal is to help you save for your retirement. It can offer many tax advantages, which is just one reason many individuals choose to use them for retirement savings. There are two types of IRAs, Roth and Traditional.

Who can open an IRA?

If you are under the age of 70.5, you can open a traditional IRA, but you can start a Roth IRA at any age if you have earned income. If you’re already teaching your children about savings and retirement (good for you!) the tax-free Roth IRA can often be a better choice, but I would recommend working with a financial advisor to know the best steps to take.

When can I withdraw money from my IRA?

If you want to withdraw your money without a penalty, you need to be 59.5 years of age. If you want to withdraw your money before that point, you should consider speaking with your financial advisor to learn what the penalties will be.

What is the difference between a Traditional and Roth IRA?

The most notable difference between a Traditional IRA and Roth IRA is the type of tax benefits that each will offer. A Traditional IRA can provide a deduction for contributions, and you defer taxes on investment earnings until the funds are withdrawn (typically in retirement). With a Roth IRA, you get no deduction for contributions, but if you follow all of the rules, your investment earnings will be tax and penalty-free in retirement. If you would like to learn more about which one could help you reach your goals, I would be glad to discuss them with you.

What is a SIMPLE IRA?

SIMPLE = Savings Incentive Mach Plan for Employees. This type of IRA allows employees and employers to both contribute to a plan that is set up and designated as a SIMPLE IRA and benefits the employee. In this type of IRA, the employee would choose to defer a portion of their paycheck towards their IRA and the employer can either make a matching or non-elective contribution. If you are an employer who wants to provide extra benefits for your employees, I would be glad to discuss the options available to help you work towards the goals of your business.

When I open an IRA, how should I invest the funds within my account?

The beauty of an IRA is that you get to choose from a full range of investments and select the ones that work best for you and your future financial goals. You can generally select from a full range of investments. If you are unaware of these types of investments and how they’ll affect you IRA, I would love to sit down and discuss them with you.


Start Planning for Retirement

It’s not too early to start planning for retirement, and with that, it’s not too late, either. If you’ve been considered opening an IRA, I hope you will consider contacting me. For all of your financial and insurance needs. The Wallstreet Group is based in Jefferson City, Missouri, but I take clients from all over the state - and I would appreciate the opportunity to serve you as well.

You can trust the Wallstreet Group to assist with your financial and insurance goals - follow us to learn more!


Dylan Lueckenotte, Wallstreet Group
1530 Rax Court
Jefferson City, MO 65109

573-636-3222
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*Securities and Advisory Services offered through Client One Securities, LLC Member FINRA / SIPC and an Investment Advisor. Wallstreet Group and Client One Securities, LLC are not affiliated.

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