Planning

Retirement Planning

Individual Retirement Accounts (IRAs) - A popular savings vehicle for retirement funding, IRAs offer tax-deferred growth of contributions and earnings. There are two types of IRAs:

Roth IRA. A non-deductible IRA that permits tax- and penalty-free withdrawals of contributions and earnings— if the account is held for five years and you are over age 59½. Roth IRA contributions can be withdrawn, tax- and penalty-free.
Traditional IRA. An IRA that is deductible under certain circumstances, and that permits penalty-free withdrawals if you are over age 59½, at which time your money is subject to ordinary income tax. The Traditional IRA also offers favorable tax treatment on withdrawals for certain financial goals, such as homeownership and higher education.

Citigroup, Inc., its affiliates, and its employees are not in the business of providing tax or legal advice. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the "promotion or marketing" of the transaction(s) or matters(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.