Should I convert to a Roth IRA?
An Individual Retirement Account (IRA) is a great way to save for the future, but choosing between a Roth IRA and a Traditional IRA depends on your financial goals and tax situation.
A Traditional IRA lets you deduct contributions now and pay taxes on withdrawals in retirement, while a Roth IRA requires after-tax contributions but allows tax-free withdrawals later. Traditional IRAs have required minimum distributions starting at age 73, while Roth IRAs have no withdrawal requirements. Roth contributions can be withdrawn anytime tax-free, but early withdrawals of earnings may be penalized. The best choice depends on whether you prefer tax benefits now or tax-free income in retirement.
Use the calculator below to determine if a Roth IRA is the solution for you:
The figures entered on the input page of this calculator are for hypothetical purposes only. You should enter figures that are appropriate to your individual situation. The results provided by this calculator are also intended for illustrative purposes only and accuracy is not guaranteed. This calculator is not intended to offer any financial or investment advice and does not assure the availability of or your eligibility for any specific product offered by Florence Federal Credit Union, nor does this calculator predict or guarantee the actual results of any investment or loan product. The terms and conditions of products offered by institutions will differ and may affect the results of the calculator. Please consult with qualified professionals to discuss your individual situation.
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