IRAs are traditionally thought of as a tax-advantaged way to save for retirement. But did you know they can also help you with some of life’s big purchases, all while you continue to save for retirement?
You may withdraw your money from an IRA at anytime; however, a 10 percent tax penalty may apply if you are younger than age 59½. Certain IRAs may offer penalty-free withdrawals prior to age 59½ for qualified exceptions.
Qualified exceptions may include:
Home Sweet Home – Up to $10,000 of your IRA account can be put toward the purchase of your first home.
Higher Education – Use money in your IRA account to fund college expenses for you, your spouse or your children.
Disability – Draw on your IRA account if you become totally and permanently disabled.
Medical Bills – Pay for non-reimbursable medical expenses from your IRA savings.
Health Insurance While Unemployed – IRA money can be used to pay health insurance costs while you’re unemployed.
Other qualified exceptions may apply and withdrawals may be subject to income tax. It is always a good idea to consult your tax or financial advisers prior to making changes to your retirement funding strategy. To learn more about the two main types of IRAs – Traditional or Roth – contact your Farm Bureau agent or visit www.FBFS.com.
Neither the Company nor its agents give legal, accounting or tax advice. Consult your advisers in these areas.
Tips brought to you by Farm Bureau Financial Services. For more information about products and services, call Shane Blanchard at 515 528 2319.
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