An Indianapolis elder law attorney can provide you with help in making plans for the most secure retirement possible. Many people are scared that they will not have enough income for retirement, and rightly so. Social Security does not provide enough money to live on, and far too few people approaching retirement have too little savings. That is why it is so important for you to make advanced plans and work with an Indianapolis elder law attorney throughout your life to create a comprehensive strategy for retirement security.
Frank & Kraft can help you to set goals for saving for retirement, to use the right tax-advantaged accounts to achieve those goals, and to ensure that you have done everything possible to protect the assets that you are saving for your future. One of the ways that we can help you is assisting you in understanding your options for investing in an IRA for retirement.
Investing in an IRA has many benefits, but you’ll need to select the right type of IRA and make sure that you understand the rules, including income limits for making tax-advantaged contributions as well as annual contribution limits. You should give us a call to find out about the assistance that an Indianapolis elder law attorney can provide to you when it comes to investing for retirement.
What are the Benefits of Investing in an IRA for Retirement?
Some of the benefits of investing in an IRA for retirement include the following:
- You can get tax breaks for investing: When you put money into a traditional IRA, you get those tax breaks in the year that you make the contribution. This means that the contribution does not actually reduce your take-home pay by as much as contributing to a taxable retirement would. For example, if you contribute $5,500 to an IRA this year, you would be able to deduct this $5,500 from your taxable income and would not have to pay federal or state taxes on the money. If you are in the 22% tax bracket, this saves you $1,210 just in federal taxes. So, your take-home pay is only reduced by $4,290 instead of being reduced by the full $5,500 you contributed because you would’ve otherwise paid that $1,210 in taxes. If you opt for a Roth IRA instead, you contribute with after-tax dollars but you get tax breaks when you take your money out since you aren’t taxed on withdrawals.
- The money in the IRA is protected: Money in an IRA is treated differently for many legal purposes than money in a taxable investment account. For example, if you declare bankruptcy, the money in your IRA should likely be safe and will typically not become part of the bankruptcy estate.
- You have a wide array of investment options: IRAs can be opened with almost any bank or brokerage firm. You can also invest the money in your IRA in almost anything that you want to invest in, including stocks, bonds, mutual funds, ETFs, and more. When you put money into a 401(k), you may have a limited number of options for investing your money depending upon the plan that your employer offers.
There may also be other advantages to putting money into an IRA depending upon the specifics of your situation. You should reach out to Frank & Kraft to get help with the creation of a personalized retirement plan.
Getting Help from an Indianapolis Elder Law Attorney
Frank & Kraft helps you in many ways to be prepared for retirement. We can assist you in understanding the rules for tax-advantaged retirement savings accounts and can provide you with guidance on how to ensure you have taken steps to protect your hard-earned retirement assets.
To find out more about how our firm can help you with your retirement plan, join us for a free seminar. You can also give us a call at 317-684-1100 or contact us online to talk with an Indianapolis elder law attorney about the personalized help and support that we can offer you.