Frequently Asked Questions

Traditional IRAs are a tax-deferred investment account. Any money contributed to a traditional IRA is not considered income for the current tax year and is therefore not taxed until it is withdrawn. This makes traditional IRAs ideal for making large deposits now (exempt from higher tax bracket rates) for small withdrawals after retirement (taxed at lower tax bracket rates).

Roth IRAs are a tax-advantaged investment account. Any money contributed to a Roth IRA is still considered as income for the current tax year and is therefore taxed. However, upon reaching full retirement age, withdrawals will not be considered income and will therefore not be taxed. This makes Roth IRAs ideal for making small deposits now (taxed at lower tax bracket rates) for large withdrawals after retirement (exempt from higher tax bracket rates).

In the year before you reach full retirement age, you can make $18,960 without your SS benefits being reduced. For every $2 dollars earned over $18,960, your benefits are reduced by $1. In the year you reach full retirement age, you can make $50,520 without your SS benefits being reduced. For every $3 dollars earned over $50,520, your benefits are reduced by $1.

Your full retirement age depends on the year of your birth according to the table found here https://www.ssa.gov/benefits/retirement/planner/agereduction.html. If you were born on the 1st of the month, refer to the previous month (or the previous year if born on January 1st).

Year of Birth

1943 – 1954

1955

1956

1957

1958

1959

1960 – Present

Full Retirement Age

66

66 and 2 Months

66 and 4 Months

66 and 6 Months

66 and 8 Months

66 and 10 Months

67

This page is still a work in progress.