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MissionSquare Wealth Management
Choose the IRA That’s Right for You
Whether you choose a traditional or Roth IRA, you have a chance to grow your savings. A traditional IRA may be your best option if you’re looking to lower your taxable income. On the other hand, a Roth IRA can give more flexibility in the long run. Either way, both accounts can help you reach your long-term goals.
Open an Account
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What Is an IRA?
An Individual Retirement Account is a personal savings option that can help you work toward long‑term retirement security. Because IRAs are individually owned, you have flexibility over how much you contribute, how your money is invested, and when you take withdrawals. You may choose to manage investments yourself or work with an investment adviser who manages the portfolio on your behalf. MissionSquare offers both traditional and Roth IRAs to align with a range of financial objectives.
Types of IRAs
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Traditional IRA
A traditional IRA allows you to make tax-deferred investments, which can potentially lower your taxable income for the year. Your investments grow tax-deferred, and withdrawals during retirement are taxed as ordinary income.
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Roth IRA
A Roth IRA is funded with after-tax income, which means you pay taxes now. In return, your investments grow tax-free, and qualified withdrawals during retirement are also tax-free. Roth IRAs are appealing to individuals seeking more flexibility with withdrawals.
Roth IRA vs. Traditional IRA
Contributions, Eligibility, and Distribution
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Contributions
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You can set up contributions to be automatically deducted from your paycheck and deposited directly into your traditional or Roth IRA, or you can make contributions manually from a brokerage or bank account. Traditional and Roth IRA contribution limits set by the IRS vary from year to year. For 2026, the maximum contribution for traditional and Roth IRAs is $7,500 annually or $8,600 if you’re 50 or older.
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Eligibility Requirements
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Anyone with earned income can contribute to an IRA. For traditional IRAs, there are no income limits as to what you can contribute, though income can affect your tax deduction. For Roth IRAs, your contribution might be limited based on your tax filing status and income.
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Distribution Options
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For traditional IRAs, distribution options include standard withdrawals after age 59 1/2 and RMDs starting at age 73. For Roth IRAs, contributions can be withdrawn anytime without penalties. To take out earnings tax-free, you must be 59 1/2 and have had your Roth IRA for at least five years.
What Are the Benefits of an IRA?
IRAs offer many advantages for your future, including:
- Tax-Advantaged Growth: Your money grows faster, whether it’s tax-free or tax-deferred.
- Flexible Contributions: Choose how and when you contribute up to the annual IRS limits.
- Control Over Your Money: You have the freedom to select the funds you want to invest in.
- Supplemental Savings: You can use your IRA account to complement a 457(b) or 403(b) plan.
IRA Distribution Rules To Know
Roth vs. Traditional IRA: Which Is Right for You?
Determining which IRA is right for you depends on whether you plan to be in a higher tax bracket when you retire or think you’ll be at your current level or lower. Roth IRAs may be better if you’ll be taxed at a higher rate later in life. Traditional IRAs might work best if you think you’ll be in a lower tax bracket and subject to lower tax rates on future withdrawals.
Frequently Asked Questions
Who can open an IRA?
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Anyone with earned income can open an IRA.
Do IRAs have income limits?
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Roth IRAs have income limits based on how you file your taxes. Learn more about IRS details on the current year’s Roth IRA contribution limits. A traditional IRA allows you to make tax‑deferred investments, which may reduce your taxable income, subject to IRS deductibility limits. Investments grow tax‑deferred, and withdrawals in retirement are taxed as ordinary income. Learn more about traditional IRA deduction limits.
Can I contribute to both a Roth IRA and a traditional IRA?
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You may contribute to both a traditional IRA and a Roth IRA, which can be a great way to diversify earnings. Keep in mind that total annual contributions across both accounts are subject to combined IRS limits that change over time. Each has different tax and withdrawal rules.
I want to open an IRA. How do I get started?
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You can quickly and easily open a MissionSquare Wealth Management IRA online today.
If you already participate in a MissionSquare workplace retirement plan, you can log in to add a MissionSquare Wealth Management investment account.
If you are not a current workplace plan participant, you can create a new MissionSquare Wealth Management investment account.
Have More Questions?
Call (800) 669-7444 to speak with a MissionSquare Wealth Management representative weekdays 9 a.m. to 4 p.m. ET.
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Financial Planning Services
Access services like to consultations with a [small-caps]Certified Financial Planner[/small-caps]® professional, personalized financial goal plans, webinars, and more.
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Understanding Retirement Taxes
Most distributions from your MissionSquare accounts are subject to federal and possibly state and local income taxes. Planning for these expenses is essential to managing your investments.
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Roll-In Services
Learn about rolling over funds from one account to another. We make the process simple and can help you weigh your options to determine what works best for your long-term goals.
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