Many people who have either a traditional IRA or a Roth IRA are looking for other safe ways to grow their retirement assets. One option that gets overlooked by many is that an IRA CD can be part of an IRA plan.
IRA certificates of deposit are another viable option to build your savings for retirement. But before you get started, it's important to know the difference between the two types of retirement accounts:
- A traditional IRA uses pre-tax dollars. There may not be taxes due on any gains or interest until the account holder reaches retirement age depending on your situation.
- A Roth IRA allows an individual to use after-tax dollars to grow the balance. Upon withdrawal, there are usually no taxes due on any part of the account. A Roth IRA has some income restrictions as well. Both can be an excellent choice for retirement planning.
With IRA certificates of deposit, you get the "best of both worlds" in a sense: the tax benefits of an IRA and the safety and security of a CD, which is a great alternative for many people.
Placing an IRA CD into a traditional or Roth IRA Plan can be done online at Ally Bank. Many people like the ease and convenience of banking online. You can still supplement your retirement savings efforts with Ally Bank's IRA CD products, which offer some of the most competitive interest rates around. Learn more at allybank.com or call live, 24/7 customer service at 877-247-ALLY (2559) today.