When it comes to your IRA, we encourage you to contribute up to the contribution limit every year. However, you do not have to contribute the full amount. You may skip a year or just contribute a smaller amount if you need to. You can resume making contributions at any time, but you cannot catch up for the years that no contribution was made.
If you're considering starting an IRA, keep in mind the differences between and advantages of Traditional and Roth IRAs.
With a Traditional IRA, contributions may be tax-deductible in the year you make them, depending on your income and participation in an employee-sponsored retirement plan, such as a 401(k). When taking distributions, keep in mind the money may be taxed at the time of withdrawal.
Roth IRA contributions are not tax-deductible; however, withdrawals are tax-free, subject to certain requirements, if your age is at least 59.5 and you have had your account for at least five years.
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