The individual retirement account
(IRA) is celebrating its golden anniversary. Created in 1974, this savings
vehicle has helped millions of people build resources for retirement. And in
1997, the Roth IRA was introduced. But which IRA is right for you?
Let’s look at the basic differences between the two IRAs.
With a traditional IRA, you generally invest pretax dollars, so the more you
put in, the lower your taxable income. Your earnings grow tax deferred, meaning
you pay no taxes on them until you start taking withdrawals. (If you take
withdrawals before you reach 59½, you’ll
be subject to ordinary income tax and a 10% IRA penalty.)
When you invest in a Roth IRA, your contributions aren’t
deductible, but they can be withdrawn at any time, tax- and penalty-free. And
you can typically withdraw your earnings on these contributions tax free once
you’re 59½ and you’ve had your account at least five years. (If you don’t meet
these conditions, withdrawals of earnings are subject to income taxes and the
10% penalty.)
So, are you better off by taking the
immediate tax break offered by a traditional IRA or the long-term benefits of
tax-free withdrawals available with a Roth IRA?
If you think you’ll be in a higher tax
bracket when you retire, you might want to consider a Roth IRA, especially if
you have a long time until retirement. This will give you more opportunities to
put away funds that can be withdrawn tax free. Conversely, if you think you
might be in a lower tax bracket upon retirement, you might lean toward a
traditional IRA, as you’d get the tax benefits now, when you’re in a higher
bracket, and can eventually make your taxable withdrawals when you’re in a lower
one.
Here's something else to keep in mind:
Once you turn 73 (or 75 if you were born in 1960 or later), you must start
taking taxable withdrawals — technically called required minimum distributions,
or RMDs — from your traditional IRA. But if you have a Roth IRA, you won’t face
RMDs and can essentially keep the money in your account indefinitely. If you
don’t need all the funds in your Roth IRA for your retirement, you can pass
them on to your heirs.
Ultimately, though, your income may
determine which IRA is right for you. You can earn any amount and contribute to
a traditional IRA, though if you exceed certain income limits, your
contributions may no longer be tax deductible. If you and your spouse don’t
have a 401(k) or other retirement plan through your employers, you can make a
full, deductible contribution to a traditional IRA regardless of your income.
But you may not be able to contribute
to a Roth IRA, or at least not make the full maximum annual contributions, if
your income is above certain levels. Your tax advisor can explain these levels,
which often increase from year to year. (In 2024, the most you can contribute
to either IRA, depending on your income, is $7,000 per year, or $8,000 if
you’re 50 or older.)
Under some circumstances, you can
convert a traditional IRA to a Roth IRA, though you’ll need to pay taxes on the
conversion. In any case, think carefully about your options and make the
choices that are appropriate for your needs.
Chad Choate III, AAMS
828 3rd Avenue West
Bradenton, FL 34205
941-462-2445
chad.chaote@edwardjones.com
This article was written by Edward Jones for
use by your local Edward Jones Financial Advisor.
When it is time to seek out healthcare assistance for yourself or an older adult, there are many options. Creating a plan can be a confusing and daunting task as you try to piece together services to meet all of your needs. For family caregivers, this can be especially stressful while also balancing the needs of work and family. Many caregivers find that care coordination for their parents can be a full-time job. PACE, which stands for Program of All-Inclusive Care for the Elderly, is an option that removes the burden of care coordination for older adults and their families. PACE is an innovative model of healthcare providing wrap-around services and coordinated care all in one place, alleviating stress on the older adult and their family. PACE provides the flexibility needed to meet the health care needs of older adults to support them living successfully in the community. A unique approach for every personEvery individual who receives care and services through PACE has a unique plan of care developed by an interdisciplinary team including providers, nurses, social workers, therapists, dietitians, homecare, transportation specialists, and more. The team works with each PACE participant to create an individualized plan that cares for the whole person, including their medical, social, and mental health needs. PACE is more than a list of services; PACE is a complete solutionPACE offers a day center, where participants can receive medical care, rehab therapies, meals and socialization. The PACE Center serves as the central hub of all services, including scheduling and transportation to and from all appointments. PACEs comprehensive services and care coordination can be an invaluable solution for the older adult and their caregivers who are balancing the needs of family and work. If you think PACE may be a solution for you, please call TRU PACE at 303-665-0115. Editors Note: This article was submitted by Samantha Black, LSW, Executive Director at TRU PACE and may be reached at 303-665-0115 or by email at SamanthaBlack@TRUcare.org
Relocating is a significant life event for anyone, but for seniors, the process can be especially daunting. Whether moving from a family home to a retirement community, an independent living facility, or a smaller apartment, seniors often face a unique set of challenges. The emotional, physical, and logistical demands of a move can be overwhelming without the right support. This is where senior transition specialists come in. These professionals are specially trained to help seniors navigate the complexities of relocation with compassion, efficiency, and expert guidance.What Are Senior Transition Specialists?Senior transition specialists are professionals who focus on providing relocation services tailored to the specific needs of seniors. They offer a range of services that go beyond just moving boxes. Their goal is to ease the stress associated with relocating by addressing the emotional, organizational, and logistical aspects of the process.With experience in downsizing, packing, moving, and unpacking, senior transition specialists are experts at creating a seamless moving experience for seniors and their families. These specialists understand the unique needs of older adults and provide personalized solutions to ensure that every aspect of the move is handled with care and efficiency.The Role of Senior Transition SpecialistsSenior transition specialists assist in every step of the relocation process, from the initial decision to move to the final unpacking at the new location. Their responsibilities include:1. Personalized Planning and CoordinationA seniors move is never a one-size-fits-all process. Transition specialists work closely with seniors and their families to develop a customized plan that fits the seniors needs, preferences, and timeline. This planning process includes determining the best moving dates, managing logistics, and coordinating with care facilities, family members, or other parties involved in the move.For example, services like My Senior Moves help create a comprehensive moving strategy that ensures the senior feels in control of the process and confident in their transition.2. Downsizing and Organizing BelongingsOne of the biggest challenges seniors face during relocation is downsizing. Deciding what to keep, what to give away, and what to leave behind can be an emotional and physically exhausting task. Senior transition specialists are skilled in helping seniors make these decisions with sensitivity and care.These experts work with the senior to sort through their belongings and prioritize items based on importance, condition, and the new living spaces size. They also assist with donations, sales, or disposal of items, ensuring the seniors transition is as efficient and stress-free as possible.3. Packing and Unpacking ServicesPacking up a home full of memories, cherished belongings, and possibly fragile items is no small feat. Senior transition specialists manage the entire packing and unpacking process, ensuring that everything is done safely, efficiently, and without damage.The specialists use high-quality packing materials and techniques to ensure that fragile items, like family heirlooms or valuable artwork, are properly protected. Once the move is complete, they assist with unpacking and setting up the seniors new home, ensuring that everything is organized and in place, making the new environment feel comfortable and familiar.4. Moving Specialized ItemsSeniors often have specialized items that require extra care during the move. This can include medical equipment, mobility aids, or important documents. Senior transition specialists have the experience and training to handle these items appropriately.They are equipped to safely transport specialized items and ensure they arrive at the new home in good condition. This includes coordinating with medical supply companies, setting up equipment at the new residence, or organizing storage for documents and personal items.5. Emotional Support and GuidanceFor many seniors, moving is an emotional process. It may mean leaving behind a longtime home, neighborhood, and familiar surroundings. Senior transition specialists offer not only logistical support but also emotional assistance throughout the move.Their compassionate, empathetic approach helps reduce the emotional stress that comes with leaving a home and adjusting to a new living environment. The specialists understand the emotional significance of the transition and provide reassurance, support, and encouragement every step of the way.6. Managing Logistics and DetailsMoving can involve a significant amount of logistics, such as coordinating with moving companies, scheduling appointments, managing utilities, and ensuring that the new residence is ready for occupancy. Senior transition specialists handle these details, taking the burden off the senior and their family.From coordinating transportation to arranging utility shut-offs and set-ups, transition specialists ensure that every detail is managed, leaving seniors with fewer things to worry about.Benefits of Working with Senior Transition SpecialistsThe primary benefit of hiring a senior transition specialist is the peace of mind it brings to both the senior and their family. These experts make the entire process less stressful and more efficient. Below are some key benefits:Reduced Stress: By handling all the logistics and providing expert guidance, senior transition specialists take the stress out of the move. This allows seniors and their families to focus on what truly matterssettling into the new home and enjoying their new phase of life.Compassionate, Personalized Care: Transition specialists offer tailored services to meet the unique needs of each senior. They understand the challenges involved in moving and approach each relocation with empathy and care.Expertise in Senior Needs: Transition specialists are experienced in working with seniors and understand the specific challenges that older adults face when relocating. From physical limitations to emotional attachment to possessions, these professionals are trained to address these needs and create a smooth transition.Time-Saving: Moving is a time-consuming process, especially when factoring in sorting, packing, and coordinating with various service providers. Senior transition specialists handle all the time-consuming tasks, saving both the senior and their family a significant amount of time.Familiarity with Senior Living Communities: Many senior transition specialists have established relationships with senior living communities, making the transition even smoother. They know the rules, layouts, and requirements of these communities and can ensure that everything fits perfectly in the new space.Conclusion: Expert Guidance for a Stress-Free MoveRelocating is a significant life change, but with the help of a senior transition specialist, the process can be far less stressful. By providing expert guidance, emotional support, and logistical assistance, senior transition specialists ensure that the move is as seamless and comfortable as possible. Services like those offered by My Senior Moves offer invaluable support in helping seniors transition to their new home with ease, giving them and their families the confidence and peace of mind they need during this important life event.
Relocating to a new home is never easy, and for seniors, the process can be particularly overwhelming. The combination of physical, emotional, and logistical challenges that come with downsizing, packing, and moving can create a lot of stress for both seniors and their families. However, professional moving services, like those offered by My Senior Moves, can simplify the entire relocation process and ensure that seniors transition to their new home with ease and confidence.The Challenges of Senior RelocationFor many seniors, moving is more than just a physical shiftits a major life change that involves emotional, psychological, and even financial considerations. Seniors who are moving from a longtime family home to an independent or assisted living community often face a variety of challenges, including:Emotional Attachment: Letting go of a family home filled with memories can be difficult and stressful.Downsizing: Deciding what belongings to take and what to leave behind can be a daunting task.Physical Limitations: The physical demands of packing, moving, and unpacking may be too much for seniors to handle on their own.Time Constraints: With the often-tight timelines involved in senior moves, theres little room for delays, and the process needs to be efficient.While these challenges are common, they dont have to be faced alone. Professional senior relocation services can take the burden off the senior and their family, ensuring a smooth and stress-free transition.The Benefits of Professional Moving Services for SeniorsProfessional moving services, like Senior Moves, specialize in providing customized relocation solutions for seniors. These services cater specifically to the needs of older adults, making the transition to a new living situation as simple and stress-free as possible. Heres how professional moving services help:1. Tailored Planning and CoordinationProfessional moving companies understand that every move is unique, especially for seniors. From start to finish, they work with seniors and their families to create a personalized moving plan that considers the seniors specific needs and preferences. This includes developing a schedule, organizing appointments, and ensuring all aspects of the move are handled efficiently.By working with a professional moving service, seniors can rest assured that their move will be thoughtfully planned and executed, minimizing the chances of unforeseen complications or delays.2. Downsizing and Organization AssistanceFor seniors, one of the most emotionally and physically taxing parts of the moving process is downsizingdeciding what items to take, donate, or leave behind. Professional moving services offer downsizing assistance, guiding seniors through the process of sorting, organizing, and prioritizing their belongings.Senior Moves offers expert advice on what to bring to the new home and how to efficiently pack belongings to avoid clutter. They can even assist with donating or selling items that are no longer needed, ensuring that the senior isnt burdened with sorting through everything on their own. This support not only eases the physical load but also helps with emotional closure during the transition.3. Packing and Unpacking ServicesPacking for a move can be physically taxing and time-consuming, especially when dealing with fragile or sentimental items. Professional moving services take care of all the packing and unpacking, ensuring everything is carefully packed to avoid damage during transit. The packing materials are often of higher quality than what most individuals would use on their own, offering extra protection for delicate items.Once the move is complete, professional movers also handle the unpacking process, making sure everything is set up in the new home in a way thats comfortable and functional. This allows seniors to focus on settling into their new environment rather than worrying about arranging furniture or unpacking boxes.4. Moving Specialized ItemsSeniors often have unique items that require special care during a movewhether it's a beloved antique, fragile china, or medical equipment. Professional moving services have the expertise to handle these items with care. They know how to pack, move, and transport specialized items safely, giving seniors peace of mind that their possessions will arrive at the new home in the same condition they left in.5. Transitioning to New Living SpacesSeniors moving to an independent living facility or assisted living community often need help adjusting their new living space. A professional moving company can assist with arranging furniture and dcor in the new space to create a homelike environment. This step is crucial for easing the transition, as familiar items in a new setting can make the senior feel more comfortable and at ease in their new home.Additionally, these services are often familiar with the layout and regulations of many senior living facilities, ensuring that everything fits properly and complies with any guidelines.6. Emotional SupportMoving can be an emotional experience, especially for seniors leaving behind long-time homes. Professional moving companies like Senior Moves recognize the emotional aspect of the process and offer compassionate, understanding support throughout the move. The moving team is trained to work with seniors and their families in a respectful, empathetic manner, creating an environment that fosters trust and comfort.Families also benefit from the peace of mind knowing their loved one is supported by professionals who specialize in senior relocation.7. Reduced Stress for FamiliesFamily members who are often the primary caregivers or decision-makers during a seniors move can feel overwhelmed by the many details involved in the process. By hiring a professional moving service, families can offload much of the work involved in planning and executing the move. This allows family members to focus on providing emotional support for their loved one while leaving the logistical aspects to the experts.Why Choose Senior Moves?Senior Moves is a leading provider of senior relocation services that offers customized solutions designed to reduce the stress and complexity of the moving process. With a dedicated team of experts, Senior Moves ensures that seniors receive the support they need every step of the way, from downsizing to packing to settling into their new home.Their services are built around a deep understanding of the unique challenges seniors face during a move, and they provide an empathetic, personalized approach to help make the transition as smooth as possible. Whether the senior is moving to an independent living community, an assisted living facility, or simply relocating within the same city, Senior Moves provides the expertise and support needed for a successful move.Conclusion: A Stress-Free Senior RelocationRelocating to a new home can be one of the most stressful experiences in life, particularly for seniors. However, by enlisting the help of professional moving services, the entire process can be simplified, allowing seniors and their families to focus on what truly matters: the new chapter ahead. With services like those offered by Senior Moves, seniors can navigate the challenges of moving with ease, knowing they have a trusted partner to handle the logistics, the packing, and the emotional support needed for a smooth transition.