- Your money grows on a tax-deferred basis.
- Contributions to your IRA may be tax deductible.
- You can get to your money without a distribution penalty at age 59 ½.
Coverdell Education Savings Accounts (CESAs)
Converting a Traditional IRA to a Roth IRA
Why Invest Now?
The sooner you start, the more money you'll have. And the longer you wait, the less you could have. Here's a startling (and real) example:
This chart shows the total account worth of your IRA if you start saving at 21.
Now see what happens if you wait until age 35 to start.
These charts assume annual contributions and a 3% rate of return compounded monthly. Your own plan may earn more or less than this example and income taxes would be due when you withdraw from your plan.