Cleveland, Ohio (PRWEB) November 20, 2012
While investors get ready to make 2012 history and continue to prepare for their retirement years in this unstable economy, Equity Trust reminds those with IRAs and other retirement savings accounts that contributing the maximum amount allowed now can make a big difference come retirement time.
The limit for traditional and Roth IRAs is $5,000, or $6,000 for those 50 and older. Contributions can be made until Tax Day – April 15, 2013 – to count for the 2012 contribution year.
Knowing the 2012 IRA contribution limits – and maxing them out – can make the difference when it comes to building a sound financial future. For one, the contributions may be tax-deductible.
Getting in on the maximum 2013 contribution could provide a benefit down the road as well. For example, the investor that opens an IRA and contributes the maximum $5,000 each year with an 8 percent interest rate will have an account worth over $89,000 in 10 years, as opposed to just over $77,400 if that person missed out contributing for the 2012 contribution year.
Not including the original $5,000 contribution, that investor would be missing out on about $6,600 in interest by delaying by just one contribution year.
Investors can calculate scenarios relevant to their own situations with Equity Trust’s compound interest calculator.
Find the 2012 contribution limits for all the types of accounts Equity Trust offers at http://www.trustetc.com/equity-university/irs-contribution-limits.html
For more details on opening a self-directed IRA or other account, click here.
About Equity Trust Company
Equity Trust Company, with its corporate headquarters in Cleveland, Ohio and operations in Waco, Texas and Sioux Falls, South Dakota, is at the forefront of the self-directed retirement plan industry. The company specializes in the custody of alternative assets in self-directed IRAs, Coverdell Education Accounts, Health Savings Accounts and qualified business retirement plans. Along with its affiliates, Equity Trust provides services to more than 130,000 individuals and businesses nationwide with approximately $11 billion in assets under custody. Since 1974, the company and its affiliates have helped investors make tax-free profits through education, innovation, and a commitment to understanding individual needs. Visit http://www.TrustETC.com for more information.