IRVINGTON, N.Y. -- Although retirement may seem far off, it's never too early to start putting away money for the future. Through Individual Retirement Accounts or IRAs, workers are able to securely save money for later, often with long-term tax benefits.
Sunnyside Federal, a community bank since 1930, offers Roth and Traditional IRAs for a tax-advantaged way to save for retirement. "I always wondered why people didn't contribute more savings towards their IRA," said Elaine Soliman, marketing director at Sunnyside Federal. "But the advantages of an IRA should motivate you to really plan for a great retirement."
Sunnyside Federal offers both Traditional IRAs and Roth IRAs that are invested in a safe way to accumulate interest over time. Although similar, there are differences between the two IRA options. "A traditional IRA is tax deductible while a Roth IRA is not," said Soliman. "While you can't touch the money until six months before of your 60th birthday, both accounts should result in a ton of interest, depending on how much you have contributed over the years."
Many companies offer retirement plans, but employees might not fully recognize the benefit. "Your IRA contributions are pulled out of your wages before taxes are withheld, so you get reduced taxable income and tax-free growth," said Soliman. "You pay taxes on IRA assets when you withdraw them from the plan, but with the new and increasingly popular Roth IRA, the contributions are after-tax, which many people prefer."
While there are many reasons people don't want to allocate a portion of their monthly paycheck to an IRA that can't be touched for years, it's important to look towards the future. "The early bird gets the worm when saving for retirement because some people in their late 40's and 50's have trouble with their finances," said Soliman. "Don't let anything stop you from saving, not even uncertain economic times."
Learn more about Sunnyside Federal's IRA's by visiting their website.