Before you start, see if you’re eligible to start using this tax-advantaged account to start saving for your retirement.
An Individual Retirement Account (IRA) is a type of savings account that is designed to help you save for retirement and offers many tax advantages.
Yes, you may make contributions to both a Traditional IRA and a Roth IRA in the same year, provided the combined total contribution does not exceed your contribution limit, or 100% of earned income, whichever is less, for the year, including any catch-up contributions.
For example, in 2017, the total amount you can contribute to both a Traditional IRA and a Roth IRA combined cannot exceed ,500 (,500 if age 50 or older).
To explore whether this approach is a good choice for you, or to learn more about how to transfer or consolidate IRA assets, call us at A Roth conversion involves a transfer of assets from your Traditional IRA or employer-sponsored retirement plan, such as a 401(k), 403(b) or Government 457, into a Roth IRA.With a Roth IRA, you get no deduction for contributions, but if you follow all the rules your investment earnings will be distributed tax- and penalty-free in retirement.Traditional IRAs can provide a deduction for contributions and you defer taxes on investment earnings until funds are withdrawn, typically in retirement.It's used to determine whether or not you’re allowed certain tax benefits like being able to deduct your Traditional IRA contribution or qualify to make a Roth IRA contribution. Review IRS information on IRAs, IRS Publication 590-A, or contact your tax advisor.You can choose from a full range of investments from Wells Fargo Advisors (stocks, bonds, Exchange-Traded Funds (ETFs), and mutual funds) and Wells Fargo Bank (CD and savings accounts).