Retirement, Investments, & Insurance for Individuals Invest & Retire Individual Retirement Accounts (IRAs)

Individual Retirement Accounts (IRAs)

Individual Retirement Accounts (IRAs)

Retire on your terms by investing in your future self.
Why choose an IRA?

What's an IRA?

In short, it's a tax-advantaged savings account that helps you prepare for retirement. Think of it as timing your taxes–depending on the type of account you choose, you can defer taxes on contributions and earnings today but pay in retirement, or make Roth (after-tax) contributions and take tax-free withdrawals in retirement.

Why choose an IRA?

IRAs are built to help you pay for everyday things and even bigger dreams after your working years. They enable you to reduce the tax burden on your finances and allow you to save beyond an employer's retirement plan.

Traditional or Roth IRA?

Traditional IRA

A traditional IRA lets you deduct savings contributions from your taxes, which lowers your taxable income for the year–but you pay taxes on the money when you withdraw it in retirement.

Learn more about traditional IRAs

Roth IRA

A Roth IRA uses after-tax money, meaning you pay taxes on your contributions at the time you put the money in and, future withdrawals are tax free as long as you follow Roth IRA rules.

Learn more about Roth IRAs

Footnotes

Deductibility of contributions is dependent upon coverage by an employer-sponsored retirement plan for you or your spouse and your Modified Adjusted Gross Income (MAGI). Your account must be open for 5 years and you must be over 59 ½ to be eligible for qualified tax-free withdrawals of earnings.
Investment and Insurance products are: 
• Not Insured by the FDIC or Any Federal Government Agency 
• Not a Deposit or Other Obligation of, or Guaranteed by, any Credit Union or Bank 
• Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested 

The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment advice or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.

Insurance products and plan administrative services provided through Principal Life Insurance Company®. Securities offered through Principal Securities, Inc., member SIPC and/or independent broker/dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, IA 50392.