The Internal Revenue Service recently announced that individuals have until May 17, 2021 to meet certain deadlines that would normally fall on April 15, such as making Individual Retirement Account (IRA) contributions. This includes both Roth and Traditional IRAs. Roth contributions are after-tax, which means you pay taxes now on your contributions, but all qualified* withdrawals, including earnings, are tax-free. Traditional IRA contributions may be tax deductible and the earnings are tax-deferred while accumulating in the account; however, contributions and earnings are taxable when distributed.
So if you didn’t max out your 2020 IRA contributions, now’s your chance.** (Learn more about contribution limits.)
An IRA is a great way to save for your future by increasing your retirement savings and taking advantage of tax benefits. Member Benefits offers low administrative fees and a fee cap. There are no fees to open or close an account. If you meet eligibility guidelines and live in one of the states that offer our IRA program, you and your family can participate. Find out if your state is eligible.
For more information about saving with an WEA Member Benefits IRA, visit our IRA page or call us at 1-800-279-4030.
*For qualified withdrawals from the Roth IRA, the participant must be age 59½ or older and have held the Roth IRA account for at least five tax years.
**Consult your personal advisor or attorney for advice specific to your unique circumstances before taking action.