Your Secret to Lower Taxes and More Wealth! Copy
Saving for the future might seem daunting, but there’s a simple and tax-efficient way to grow your wealth—Individual Retirement Accounts (IRAs). These accounts offer tax advantages designed to help you build a strong retirement savings plan over time while minimizing your taxable income.
But what exactly is an IRA, and how does it help you save on taxes? Let’s break it down and explore how Beanstox makes starting an IRA effortless and automated.
TL;DR: Everything in 20 seconds
Tax-Advantaged Growth: Depending on the IRA type, you can enjoy either tax-free growth or tax deferral until retirement.
Build Wealth for the Future: IRAs are designed specifically for long-term retirement savings.
Two Types of IRAs:
Traditional IRA: Contributions may be tax-deductible and grow tax-deferred, with withdrawals taxed as income in retirement.
Roth IRA: Contributions are taxed upfront, but earnings and qualified withdrawals in retirement are tax-free.
IRA Contribution Limits: For 2024, the annual limit is $7,000 (or $8,000 if you’re 50 or older).
Start with Just $100 on Beanstox: Low minimum investment makes it easy to begin.
Automated Contributions: Set it and forget it and grow your wealth effortlessly.
Penalty-Free Withdrawals in Certain Cases: Special expenses like first-time home purchases may qualify for early withdrawal exemptions.
Power of Compounding: The earlier you start, the more your investments can grow over time.
Are capital gains in a Roth IRA taxable? No, qualified withdrawals in a Roth IRA are completely tax-free.
Do you pay tax on interest earned? Yes, but IRAs provide a way to grow your money without annual taxation on gains.
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 for a smart way to save for retirement, an IRA is one of the best options.
Traditional IRA: A Traditional IRA allows you to make tax-deductible contributions, reducing your taxable income for the year. Your investments grow tax-deferred, meaning you won’t pay taxes until you withdraw in retirement. However, withdrawals in retirement are taxed as regular income. This option is ideal if you expect to be in a lower tax bracket when you retire, as you can defer taxes until then. Additionally, interest in a savings account is taxable, but with a Traditional IRA, interest and investment growth are not taxed annually.
Roth IRA: A Roth IRA, on the other hand, is funded with after-tax money, meaning contributions are not tax-deductible. However, the key advantage is that your earnings grow tax-free, and qualified withdrawals in retirement are also 100% tax-free. This makes it a great choice if you anticipate being in a higher tax bracket later in life. Additionally, capital gains in a Roth IRA are not taxable, offering even greater long-term benefits.
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.
💡 Both IRAs allow tax-advantaged growth, helping you maximize savings over time.
Why Should You Open an IRA?
✔ More Flexibility: Unlike employer-sponsored retirement plans, IRAs are available to anyone with earned income
✔ Long-Term Growth: The earlier you start, the more time your money has to grow through compounding.
✔ Tax Benefits: Traditional IRAs can reduce your taxable income today, while Roth IRAs provide tax-free withdrawals later. ✔ Access to Funds When Needed: Certain expenses (like a first home purchase or education costs) may qualify for penalty-free withdrawals.
✔ How much tax on savings account interest? It depends on your tax bracket, but IRAs help shelter your savings from annual taxes.
How Beanstox Simplifies IRA Investing
We understand that getting started with investing can feel overwhelming. That’s why Beanstox makes IRA investing simple and automated:
🔹 Automatic Savings: Set up recurring contributions that fit your budget.
🔹 Low Minimum Investment: Start with as little as $20—no large initial deposit required.
🔹 No Investing Experience Needed: Beanstox creates and manages your portfolio based on your financial goals.
🔹 Easy Tracking: Monitor your progress with user-friendly tools.
🔹 Saving vs. investing chart: Understand the difference between traditional savings and tax-advantaged investing options like IRAs.
Start Early, Grow Over Time.
The sooner you start investing in an IRA, the more your savings can grow through tax advantages and compounding.
📈 Open a Beanstox IRA today and take the first step toward a secure financial future!
With Beanstox, building wealth is automated, easy, and optimized for your future. Our platform removes the guessworkfrom investing and helps you stay on track 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!
