SoFi Blog

Tips and news—
for your financial moves.

Which retirement account is best: Roth IRA, Traditional IRA or SEP

Which Retirement Account Is Best for You: Roth IRA, Traditional IRA, or SEP?

You might not believe it, but when it comes to retirement, Uncle Sam has your back. The proof is in the tax advantages you get by contributing to individual retirement accounts (IRAs).

Understanding how IRAs can help grow your retirement nest egg—and benefit you on tax day—is a smart money move. Even if you’re paying off student loans and have other debt obligations, allocating some money toward retirement during your early working years is crucial. The earlier you start, the longer your money has to grow. Your sixty-year-old self will definitely thank you for investing as much as you can now.

You can still make a contribution for the 2016 tax year, but you must open an account and contribute by tax day, which is April 18, 2017. Deadlines can be daunting, but don’t worry. We’ve got you covered.

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How a Roth IRA Withdraw Can Help You Buy Your First Home

Should You Use Your Roth IRA to Buy Your First Home?

As a young professional, there are many worthy financial goals competing for your paycheck dollars, including saving for retirement and buying your first home. If you’re aiming to do both, there’s a chance you’ll have to sacrifice one for the other at some point—especially if you’re paying back student loans.

On one hand, the earlier you start saving for retirement, the longer your money has to grow. On the other hand, saving for a down payment on a home in today’s market can take years—and the longer you wait, the more you’ll need. But there’s one tool that can help you save for both, without having to plan your whole life before you turn 30: A Roth IRA.

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