Your Secret to Lower Taxes and More Wealth!
Saving for the future might seem daunting, but there’s a straightforward way to grow your money with tax advantaged—Individual Retirement Accounts, or IRAs. These accounts come with tax benefits designed to help you build a retirement nest egg over time.
But what exactly is an IRA, and how does it help you save on taxes? Let’s break down what are IRAs, the advantages they offer, and how Beanstox makes getting started easy and automated.
TL;DR: Everything in 20 seconds
Tax-Advantaged Growth: Depending on the type of IRA, you can benefit from tax-free growth or defer taxes until retirement.
Build Wealth for the Future: IRAs provide an option for saving specifically for retirement
Two types of IRAs: Both Traditional and Roth IRAs can reduce your tax burden in different ways, either now or in retirement.
- Traditional IRA: Tax-deductible contributions grow tax-deferred, with withdrawals taxed as income in retirement
- Roth IRAs: Contributions taxed upfront; earnings grow tax-free, with tax-free retirement withdrawals.
IRA Contribution Limits: Annual contribution limit for 2024 was $7,000 combined across Traditional and Roth IRAs ($8,000 if 50+)
Low Starting Amount with Beanstox: You can open an IRA with as little as $20.
Automated Contributions: Set it and forget it—Beanstox makes contributing easy and consistent.
Options for Early Withdrawals in Special Cases: Some qualified expenses, like buying your first home, may allow for penalty-free withdrawals.
Potential for Growth with Time: Starting early and letting contributions grow over time can help increase your retirement savings.
Ready to explore how an IRA might fit into your financial future? Discover more with Beanstox IRAs today!
What is an IRA, and Why Should You Care?
If you’re looking to start saving for the future, an IRA is a great place to begin. Here’s a quick look at the two main types:
Traditional IRA: Contributions may be tax-deductible, which can reduce your taxable income in the year you contribute. Your money grows tax-deferred, meaning you won’t pay taxes on it until you withdraw in retirement. Withdrawals in retirement are taxed as income.
Roth IRA: Contributions are made with after-tax money (so you won’t get a tax deduction upfront), but your earnings grow tax-free. Qualified withdrawals in retirement are also tax-free, which can be an advantage if you expect to be in a higher tax bracket later on.
Both IRAs allow for tax-advantaged growth, meaning the earnings in your account are not taxed annually. For many, this can mean more money saved toward retirement without losing as much to taxes along the way.
Why Should You Open an IRA?
Flexibility Beyond Employer-Sponsored Accounts: IRAs are accessible to anyone with earned income, making them ideal for those without access to an employer retirement plan.
Compounding Growth Over Time: Starting early allows your contributions to grow over the years, thanks to compounding.
Tax Advantages for Your Future: Both Traditional and Roth IRAs offer unique tax advantages—either lowering your taxable income now or providing tax-free withdrawals in retirement.
Penalty-Free Withdrawals for Certain Expenses: IRAs offer flexibility to make penalty-free withdrawals for certain expenses like a first home purchase or qualified education expenses, though income tax may still apply.
How Beanstox Simplifies IRA Investing
We know that starting to save and invest can feel overwhelming, especially if it’s new to you. Beanstox is here to make it easier with a simple, automated approach:
Automatic Savings: Set up regular contributions with a recurring plan that fits your budget.
Low Minimums to Get Started: With as little as $20, you can start building your retirement savings.
Beginner-Friendly: No investing experience is needed—Beanstox builds a portfolio that aligns with your goals, taking care of the investment decisions for you.
Track Your Progress: Beanstox provides tools to help you monitor your account and stay on track with your retirement goals.
Start Early, Grow Over Time.
Get Started with Beanstox IRA now. The sooner you begin, the more your wealth can grow.
With Beanstox, building wealth becomes automated and easy. Our platform takes the guesswork out of building wealth through investing, helping you automate contributions and build toward your retirement goals.
Get Started With Beanstox
Set yourself up for a better future, with the freedom and security that come from having a growing portfolio. Download Beanstox and set up your automated recurring deposits today!
