An Individual Retirement Account (IRA) allows individuals to direct pre-tax income, up to specific annual limits as provided by the IRS, toward investments that can grow tax-deferred. Traditional IRAs are held by custodians such as commercial banks or retail brokers. Hillspring Financial, Inc. has partnered with Charles Schwab & Co, Inc. as the custodian for our accounts mainly utilizing no load mutual funds and exchange traded funds (ETFs) to provide you with portfolio diversification while continuously working to achieve the high possibility of returns with low fees.
Distributions from a Traditional IRA is treated as ordinary income and may be subjected to income tax. Distributions prior to age 59 ½ may incur an additional tax penalty for early withdrawals. Individuals are generally required to start taking withdrawals from your traditional IRA and retirement plan accounts when you reach age 72 (73 if you reach age 72 after December 31, 2022).
If you are interested in opening or transferring your Traditional IRA, Hillspring Financial, Inc. can guide you in evaluating your current financial situation, determine what your Social Security retirement benefit will be and estimate your average income needs upon retirement.