Individual Retirement Accounts (IRAs)
What is an Individual Retirement Account, or IRA?
An Individual Retirement Account (IRA) is an optional retirement account that is separate from your Secure Retirement Plan (SRP) and allows you to put away money from your paycheck to increase your personal retirement savings.
Why open an IRA?
- It’s affordable! It’s easy and affordable to open an IRA.
- Your money grows over time. Even if you can only put a small amount of money in your IRA each month, over time it can add a lot of money to your retirement.
- You can have many sources of retirement income. The SRP is only one source of income you have when you retire. Saving your own money through an IRA can help you retire more comfortably.
How do I get started?
Getting started with an IRA is easy with our SRP approved resources and services.
- ICanRetire®: is a personalized tool that can help you learn more about your financial future and how to use Individual Retirement Accounts (IRAs). It also makes it easier to plan for retirement.
- Washington’s Retirement Marketplace: is a secure website where you can compare Washington state-verified, low-cost retirement savings plans, such as IRA:
- Aspire: Aspire is one of the IRA providers found on Washington’s Retirement Marketplace. They offer financial planning resources in addition to their Individual Retirement Accounts at affordable rates.
- FinHabits: FinHabits is one of the IRA providers found on the WA Retirement Marketplace. FinHabits provides diversified portfolios at affordable rates.
- Learn more about opening an IRA through Washington’s Retirement Marketplace, a trusted resource.
Tax Information for IRAs
Saving for retirement has tax advantages. When you contribute money to retirement accounts like an IRA, you can use pre-tax dollars, which lowers your taxable income. The money in your account can grow without being taxed until you take it out in retirement. This can save you money on taxes and help you build a more secure financial future.
Saver’s Tax Credit Information
Did you know that if you qualify for the Saver’s Tax Credit, you can get up to $1000 per year in tax refund credits for your retirement savings account? And it’s easy to apply!
What is the Saver’s Tax Credit and what does it do?
The Saver’s Tax Credit reduces your income tax bill by giving you credits for money you contribute to a retirement savings account. If you qualify, you could get up to $1,000 in tax refund credits.
What do I get from the Saver’s Tax Credit?
The credit is worth up to $1,000 or $2,000, depending on income and marital status.
How do I qualify for the tax credit?
You must make contributions to a retirement account like an individual retirement account (IRA), be over the age of 18, and meet income requirements.
How to write off your retirement savings for the Saver's Tax Credit.
Whether you do it online or in-person, it’s easy to get the credit. Spending a little time on your taxes can be a valuable use of your time.
If you need professional help filing for the Saver’s Tax Credit, here are 2 free trusted resources for you: