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Tips, advice, and the latest news from the savings world.

What is a Roth IRA Anyways?

Written by Super User · 27 March 2012

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

Spring Cleaning

Written by Super User · 26 March 2012

March 26, 2012

By Katie Bryan, America Saves communications manager

It’s Cherry Blossom season here in DC, which lets me know that Spring has arrived. The weather is getting warmer and my winter coats are getting used less and less. It’s almost time to pack away all my scarves, hats, and coats in order to make room for baseball and soccer gear. It’s also a good time to do some spring cleaning of our finances.

Back in January we wrote a couple of articles about resolutions: Including one on sticking to resolutions and one on increasing your retirement savings by 1%.  Well, it’s been three months since we made our resolutions and it’s time to take a look at how we are doing. You may find yourself in one of these situations:

Take the Pledge

I pledge to save money, reduce debt, and build wealth over time. I will encourage my family and friends to do the same

Take the America Saves Pledge

Tip of the Day

  • Written by Tammy G. Bruzon | October 21, 2014

    Impulse buys are an easy way to blow your holiday budget. Make a plan & stick to it! http://ow.ly/CVJZf

Saver Stories View all »

Getting Out of Debt

Written by Katie Bryan | October 28, 2013

In 2004, Tonya Shelton was facing financial ruin. Barely making more than minimum wage and having lost her home to an unexpected family crisis, Shelton and her family were forced to live in a rundown hotel.

Read more...

Starting Over

Written by Katie Bryan | October 28, 2013

Until last summer, Michael Lindman spent money freely. “I was a union truck driver for 35 years and had a good income,” said Lindman. “I owned my own home, saved a little, and tried to live within my own budget. You always think there’s going to be that much coming in, but things can change in a split second.”

Read more...

Inspired to Build Savings By Starting Small

Written by Great Lakes Michigan Saves | April 19, 2016

With little-to-no money in the bank and living on a limited income with her adult daughter, Sharon wasn’t sure if building up savings for her future was even possible. “At my age, to put debts behind me would be a relief,” she said, but she wasn’t quite sure how to even get started with a savings plan. That all changed when Sharon attended the Great Lakes Michigan Saves Pay Yourself First Saver’s Summit during America Saves Week.

Read more...

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