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IRA FAQs: Find Your Answers

IRA FAQs: Find Your Answers

Posted On: March 9, 2020 by Axiom Bank in: Budgeting, Financial Planning, Personal Finance, Save money, Savings

Retirement may seem far away or coming soon to you. Either way, you likely have some questions as many people do. Today, we will tackle some of the most common questions.  What is an IRA? IRA stands for Individual Retirement Account. The purpose of it is to help people save for retirement through their paychecks. The two types of IRAs are Traditional and Roth.  Traditional: With a Traditional IRA, you are able to put pre-tax dollars away for retirement, which will later be taxed upon withdrawal. Roth: With a Roth IRA, you pay taxes each year, but will not pay taxes at withdrawal.  How much can I contribute? You may contribute less than 100 percent of your income but no more than $6,000 as of 2019 or $7,000 if you’re over the age of 50.  Can I borrow money from my IRA? The answer is yes and no. While the IRS does not want you to borrow money from the IRA, you are allowed to take money out and convert it to another retirement account. This

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