Individual Retirement Accounts (IRAs) offer the potential for tax-advantaged growth of retirement savings.

There are two types of IRAs available for individual investors, Roth and Traditional. There are some important differences between the types of IRAs, especially when it comes to income limits and tax benefits.

In a Roth IRA, you make contributions on an after-tax basis, and any earnings grow free of federal taxes.  The result is that you don't get a tax deduction now, but you won't need to pay taxes on the earnings later.  There are income limits for individuals in order to qualify for this type of account. 

A Traditional IRA's key advantage is tax deferral.  Depending you your income, you may be able to deduct your contributions from your current taxes to realize tax savings today.  Any earnings you make may grow tax deferred until retirement, at which point you have to pay taxes but at your retirement rate.

To open an IRA or for more information, contact one of the advisors of the Faith & Family Advisors Network.