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IRA benefits and why you need one

Blog Post
2 min read
hands holding a retirement clock

When you hear IRA, you may think it applies to a "future you." Retirement, beach walks, and a life that feels far away. The truth is, establishing an Individual Retirement Account (IRA) now is actually a smart way to give yourself options and flexibility down the road. 

Let's take a look at what that means.

What exactly is an IRA?

An Individual Retirement Account (IRA) is a smart, tax-advantaged way to save for your future. You put money in over time, it grows, and the IRS gives you some pretty great perks for being responsible. 

Depending on the type of IRA you choose, you can either:

  • Save on taxes now (Traditional IRA), or
  • Enjoy tax-free withdrawals later (Roth IRA)

Whichever way you go, both accounts come with their own unique potential advantages on the tax front. Your local tax advisor can give you the nitty gritty on which ones can benefit you the most.

Is an IRA right for me?

Saving for your future is always a good thing. IRAs give you the flexibility to adjust your contributions as life changes especially since there's no age limit for deposits. You can start small and contribute when it makes sense for your budget. What's that? You already have retirement benefits through your job? Even if you have a workplace retirement plan, an IRA is a great tool to bolster your employer's benefits or 401(K). You see, unlike workplace retirement plans, an IRA is yours no matter where you work. You can take a new job, start a side hustle, or even take a career break! Your IRA is along for the ride.

What's changing with IRA's in 2026?

IRA accounts have guidelines set in place by the IRS to help you save more efficiently. These rules are evaluated periodically and adjusted for things like inflation and cost-of-living. This year, the IRS announced changes that would allow for greater retirement savings.  Here's what to take note of:

In 2026, you're allowed to deposit up to $7,500 annually (up from $7,000 in 2025). And, if you're 50 or older, it increases to $8,600 making it a little easier to boost your savings...especially if you're nearing retirement. Your tax advisor can share more information about special catch-up contribution limits for older savers. 

How do I get started with an IRA?

You don't have to wait for the perfect time to open an IRA. You can stop by any SAFE branch or give us a call at 800-763-8600 when you're ready. We're happy to help you get started. Of course, we always encourage you to speak with your local tax advisor, too. They can dive into the details to see which IRA makes the most sense for your specific tax situation. 

Remember, even small contributions can add up to big gains on the road to retirement.

*The information in this article is for informational purposes only and not a substitute for professional tax advice.