Elko is the largest city and county seat of Elko County, Nevada. With a population was more than 18,000, the city straddles the Humboldt River and is home to Great Basin College. Known as “The Heart of Northeast Nevada.” Elko is located on the route of the historic California Trail, where it was first inhabited when it was at the east end of the railroad tracks built by the Central Pacific Railroad. When the railroad crews moved on decades ago, Elko remained as a center for ranching, mining, rail freight and general supplies. Elko’s economy is based heavily on gold mining, with ranching and tourism. In fact, the city is considered the capital of Nevada’s “gold belt.”
Nevada actually produces more gold than all but four countries, and most of the gold from Nevada is mined near Elko. For this reason, the town has a bustling economy dependent on the increases and decreases in the price of gold. Elko is surrounded by hundreds of abandoned mining camps.
Planning Your Retirement with IRAs
It is never too late to start planning for your retirement. It could be a mistake to rely solely on your Social Security benefits to provide a comfortable retirement. Be proactive and make a comprehensive retirement plan now, so that you can relax in your golden years. Individual Retirement Plans, or IRAs, are a great way to get started. Planning your retirement with IRAs is a simply way to plan, save and invest for your future.
What is an IRA and how does it work?
An IRA is essentially an investment account with several tax advantages that provides a reliable way to save money for retirement. Whether you have a traditional or Roth IRA, you will not be required to pay taxes on any earnings for the retirement account. Instead, the earnings can be reinvested and compounded to allow your account to experience even more growth. Once you reach retirement age and begin to make withdrawals from your IRA, your tax obligation will depend on three factors: the type of IRA you have, your present income, and the amount of your withdrawals.
The different types of IRAs
There are four different types of IRAs, each with its own benefits. The first two, Traditional IRAs and Roth IRAs, are created by individuals. Both a Simplified Employee Pension (SEP) and a Savings Incentive Match Plan for Employees (SIMPLE) are made available through an employer. All IRAs are “fully vested,” which means that all contributions and earnings belong to the individual, including those contributions made by their employers.
What Is A Gold IRA Rollover?
IRA accounts have historically included stocks, bonds, and other paper currency-backed assets, such as US Treasury Bills. But presently, retirement planning can also include an IRA account backed by physical gold and other precious metals through a gold IRA or Silver rollover. Actually, this type of IRA is a practical choice for first time investors who need security that physical gold and other precious metals provide. Precious metal IRAs are also a great option for individuals with existing retirement accounts, including IRAs, 401(k), 403(b).
Early withdrawal penalties
With any type of IRA, the IRS will charge a penalty for any early distributions or withdrawals. With a traditional IRA, you will be required to pay an additional 10% penalty if you take any distributions before you reach the age of 59½. That is in addition to the income taxes that are imposed. One benefit of a Roth IRA is that you are allowed to withdraw your original contributions at any time, without penalty. That is because you have already paid income tax on those funds. However, early withdrawals of any of your earnings will be subject to the 10% penalty, in addition to income tax. The Roth IRA has an additional requirement. Along with the age requirement of 59½, the Roth IRA must be established for at least five years before you can begin to withdraw earnings, without penalty.
If you have questions regarding IRAs or any other retirement planning issues, please contact Anderson, Dorn & Rader, Ltd. for a consultation, either online or by calling us at (775) 823-9455.
