I Want to Be an IRA Millionaire by Retirement. Here's How I'm Planning to Get There.

Individual retirement accounts (IRAs) are one of the best financial tools available to U.S. investors. Not only do they allow you to set aside money for your retirement without the need to worry about capital gains tax or dividend taxes every year, but they can provide some tremendous tax advantages for you when you contribute or withdraw money.In the case of traditional IRAs, the money you contribute can be deducted from your taxable income each year if you meet certain requirements. If you're in the 22% tax bracket and contribute $5,000 to an IRA in 2025, for example, this can save you $1,100. On the other hand, if you contribute to a Roth IRA, your deposits are never deductible in the year they are made, but any qualified withdrawals from the account in retirement will be completely tax-free.I have been contributing to my IRA rather aggressively since I was in my late 20s, and now that I'm 42 years old, I'm on track to be an IRA millionaire by the time I retire. And the best part is that there isn't a magic formula. By using two basic strategies, you can set yourself up to be an IRA millionaire, too.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool