If you’ve been wondering how to start an Individual Retirement Account (IRA), now’s the time to learn about this financial retirement option. Anyone can open an IRA as long as they have an income. Keep reading to learn about the different types of IRAs and how opening one can improve your financial future.
Unlike a 401(k), which is usually employer-sponsored, most people with an income can open an IRA on their own. In fact, you may be able to open an IRA even if you already have a 401(k) established through your employer.
IRAs typically do not have a minimum deposit amount, or minimum contribution limit. You can start with a small deposit and make annual contributions subject to IRS limits that change annually.
The two common types of IRAs, Traditional IRAs and Roth IRAs, offer tax benefits on retirement savings in different ways. Deciding which one will work best for you is the first step in opening an IRA.
Below are the two most common types of IRAs:
A Traditional IRA typically offers immediate tax benefits in exchange for a long-term commitment to saving:
A Roth IRA also has maximum contribution limits and deadlines for yearly contributions, but there are some key differences between a Traditional IRA and a Roth IRA:
A Roth IRA may offer you increased flexibility for accessing your savings while giving you tax-free income in retirement.
Synchrony Bank does not provide tax advice so be sure to contact your tax advisor or financial consultant before opening or contributing to an IRA.
Synchrony Bank offers a range of savings products, including IRAs with minimum deposit requirements and competitive rates+. We also provide award-winning customer service and 24/7 online access. If you want to save more for retirement, Synchrony Bank can help.
Call us at 1-844-345-5789 and find out how you can start an IRA for your retirement today.
+National Average APYs are based on specific product types of top 50 U.S. banks (ranked by total deposits) provided by Informa Research Services, Inc. as of 11/01/2016. CD Rates: Average APYs are based on certificate of deposit accounts of $25,000. Although the information provided by Informa Research Services, Inc. has been obtained from the various institutions, accuracy cannot be guaranteed.
*ANNUAL PERCENTAGE YIELD (APY): All APYs are accurate as of 07/17/2018.
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For Money Market and High Yield Savings Accounts, the rate may change after the account is opened. For CDs, a minimum of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be imposed for early withdrawals. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. The APY shown for CDs and IRA CDs is for a 60-month CD with a balance of at least $25,000. Click here for all CD rates and terms offered.