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Module 8c

Retirement and Estate Planning > Planning for a Secure Retirement > Module 8c

Module 8c: Traditional IRA or Roth IRA

One decision individuals have to make is whether to use a traditional or a Roth individual retirement account. Your situation will influence which type is most appropriate for you.

Many investment firms offer IRA calculators to assist with this decision. These calculators provide general estimates that can be helpful in seeking further assistance with setting up a traditional IRA or Roth IRA.

The American Institute of CPAs on 360 Degrees of Financial Literacy also provides a calculator to help you decide whether a traditional IRA or a Roth IRA is best for you.

In order to complete the forms for the calculators you will need some specific information. Different calculators ask for different information. You will need to know:

  • your tax return filing status
  • if you currently participate in an employer-sponsored retirement plan
  • if your spouse currently participates in an employer-sponsored retirement plan
  • your federal income tax rate
  • state tax rate
  • adjusted gross income
  • years to contribute to an IRA
  • amount you expect to contribute to an IRA annually

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