|One of the simplest ways to lower your taxable income is to maximize your retirement savings. While workplace retirement plans are the single most effective tool for building your nest egg, individual retirement accounts (IRAs) can also be a powerful supplement.|
Here are four reasons you should consider opening an IRA with Homestead Funds:
1. Get a potential tax break. Many tax preparation programs allow you to plug in an IRA contribution to see how much your tax liability may decline, or better yet, how much larger your refund might be. While you can contribute for this year at any time, the deadline for 2020 contributions is May 17, 2021.
2. Small amounts can add up. Low minimums make easy to get started and we are focused on keeping operating costs low, which means more money stays in your pocket. Learn how $50 a month can make a difference over time.
3. Help Secure Your Spouse’s Future. If you have a non-working spouse, they can open a spousal IRA and you can make contributions on his or her behalf.
4. IRAs aren’t just for retirement. IRAs are a flexible tool for life’s goals. If you need to save for multiple goals, or maybe aren’t sure how much to save, setting up an IRA can be a flexible way to plan for the future.
Whether you need a full-blown retirement reset or just some smart tips to guide your decisions, read on for insights from our team.
You can open a Traditional, Roth and/or SEP IRA or contribute to your account online. If you have questions or would like to discuss your investment goals, give us a call at 800.258.3030, option 2.
Homestead Funds does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.