year shows income of $29,625, then contributing $2,000 (the maximum contribution that qualifies for the benefit) to an IRA (or employer-sponsored retirement plan) generates a $1,000 tax credit, which is the maximum 50% credit. The IRS provides a detailed chart of the Saver’s Credit....
Pick the IRA that fits you best Keep in mind: Not only do the Roth and traditional IRAs offer different tax benefits, they also have different IRS rules around eligibility based on your income. Open and contribute to the one that suits you. ...
Flow Chart: Do I Need a Roth or a Regular IRA?
those assets for at least five years—the length of time the IRS generally requires assets to be held in a Roth before tax- and penalty-free distributions can be made after age 59 1/2—but it's best to have an even longer time frame so you can benefit more from tax-free growth.1 ...
This chart should convince every teen to start saving for retirementTanza Loudenback