Tips, advice, and the latest news from the savings world.
March 28, 2012
Consumer Federation of America, the parent company of America Saves, partnered with the U.S. Department of Treasury yesterday on the new Ready. Save. Grow. initiative. With millions of people indicating they need a safe and convenient way to save money for their long-term financial goals, the U.S. Department of the Treasury announced, Ready.Save.Grow., which will provide people with information and access to affordable, safe and convenient Treasury savings options that can help people take control of their future.
March 27, 2012
By Katie Bryan, America Saves communications manager
Today America Saves joins over 130 bloggers in the #RothIRAMovement. Our friend Jeff Ross at Good Financial Cents organized this little event after he gave some tips on saving at his alma mater and found that not one person had heard of the Roth IRA.
Saving for retirement was #4 on the 2011 list of Top America Saves Saver Goals. Many Americans can save for retirement through an employer-sponsored retirement plan, such as a 401(k) plan. Unfortunately, many do not have access to these types of accounts.
The good news is even if your employer doesn’t offer a retirement plan, you can still save for retirement, and get some tax benefits in the process, by putting money in an Individual Retirement Account (IRA).
Who qualifies to make IRA contributions?
Anyone who earns income (or receives alimony) can put money in an IRA. Couples can also put money in an IRA for a non-working spouse.
Each person can put up to $5,000 in an IRA if you are age 49 or below and up to $6,000 if you are age 50 or above for the 2011 tax year, so long as your contributions do not exceed your earned income. Each year, you have until the April 15 tax filing deadline to make your IRA payment for the previous tax year. (This means you still have time to contribute!)
There are two main types of IRA – traditional IRAs and Roth IRAs. In addition, those who are self-employed can put money in a SEP-IRA. Each has its own set of rules and offers different tax benefits.
ROTH IRAs Offer Tax-Free Withdrawals