When it comes to saving for retirement, many people in the United States are simply falling short. The reality is that unless people listen to Darcy Bergen and plan ahead for retirement, they are going to be disappointed when it comes to their golden years. The good news is that there are options available. One option is called an investment retirement account, which is usually shortened to IRA. For those who are looking to get the most out of these accounts, they need to understand the various available options.
Darcy Bergen Discusses the Traditional Investment Retirement Account (IRA)
One of the first types of IRAs that Darcy Bergen wants people to know is the traditional investment retirement account. This IRA has been created to incentivize people to save for their retirement. When individuals contribute to a traditional IRA, the contributions are tax-deductible. The limit changes from year to year; however, according to Darcy Bergen, the limit right now is $6,000. This limit could change in the future, so it is important for everyone to keep up with the changes to make sure they contribute as much as possible.
Darcy Bergen Discusses the Roth Investment Retirement Account (IRA)
Another option when it comes to an IRA is called the Roth IRA. This type of IRA is slightly different from the traditional IRA. According to Darcy Bergen, people pay taxes on their money when they put it into a Roth IRA but not when they pull it out. Therefore, according to Darcy Bergen, this IRA might be better for some people. It is a good idea for people to look at where their tax bracket is right now and what tax bracket they think they will be in when they retire to make sure they minimize their tax burden.
Darcy Bergen Discusses the Self-Employment Investment Retirement Account (IRA)
Finally, it is important to talk about the self-employment investment retirement account, usually shortened to SEP IRA. This is a type of IRA that has been made available specifically for those who are self-employed. Those who have 1099 are going to be eligible for this type of IRA. Darcy Bergen states that the limits on a SEP IRA are different from those present on a typical IRA, including a traditional one or a Roth. Therefore, according to Darcy Bergen, it is a good idea for everyone to work with a trained professional who understands the rules and regulations of this account so that everyone can maximize the benefits that they receive from a SEP IRA. Similar to the other IRAs, contributions to this account are tax-deductible.