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By Mark McGregor, CRPC®, CFF®

Savvy intuition can carry you through a career, but do you want to bank your retirement on not fully understanding retirement savings, such as a Roth IRA?

While you might contribute to a 401(k), an individual retirement account (IRA) can make the difference between experiencing your retirement dream and living with something less.

This guide takes the mystery out of IRAs, including the Roth IRA. You can talk to financial advisors at McGregor Wealth Management for help with the retirement you envision.

What Is an IRA?

An IRA is a way to take advantage of tax breaks to build a nest egg for life after your working years. The tax advantages make IRAs one of the best ways to save and invest for retirement. Your money can grow tax-deferred or tax-free, depending on the type of IRA you choose.

Types of IRAs

There are several IRAs to choose from, whether you’re a business owner or self-employed. However, the two most common are the traditional IRA and the Roth IRA.

Traditional IRA

In a traditional IRA, you make contributions with pre-tax dollars, reducing your taxable income. You also may deduct your contributions on your tax return. The contributions—a maximum of $7,000 in 2025 ($8,000 if you’re age 50 or older)—and any gains can grow tax-deferred. You only pay taxes when you withdraw the money.

If you have earned income, you can open an IRA at a bank, through a broker, or with an investment company.

Roth IRA

The Roth IRA takes after-tax contributions, so you pay taxes before the money goes into your retirement account. Your contribution and any gains grow tax-free, and qualified withdrawals are tax-free. The annual contribution limit is the same as a traditional IRA.

A Roth IRA also requires you to earn income to open. However, it has contribution limits based on your income and tax filing status, phasing out contributions from high earners.

An IRA can hold several investment assets, including stocks, bonds, exchange-traded funds (ETFs), and mutual funds.

How to Choose: Traditional IRA vs. Roth IRA

To choose which IRA is right for you, understand the differences and consider your tax situation, looking at which IRA can maximize the dollars you’re able to save and invest and minimize your overall tax bill. Here’s what to consider:

• Tax deductions: If you’re in a high tax bracket, you may benefit from a traditional IRA.
• Tax-free growth: If you expect to retire in a high tax bracket, a Roth IRA might be best.

With the 2017 Tax Cuts and Jobs Act sunsetting at the end of 2025, about 62 percent of American tax filers may move into a higher tax bracket in 2026, if Congress doesn’t extend current tax law.

Required Minimum Distributions and Your Retirement Income

The required minimum distribution (RMD) is another retirement consideration. An RMD is the amount you must withdraw from your traditional IRA beginning at age 73. If you’re a savvy saver and investor, your RMD might push you into a higher tax bracket in retirement.

The Roth IRA has no RMD. You can leave your money in the account for as long as you want, including passing it on to your heirs, although the account must be emptied within 10 years after you pass for most beneficiaries.

Integrating an IRA Into Your Retirement Strategy

An IRA can play a starring role in your retirement planning. Income and tax efficiency are key components in building a solid retirement plan, and IRAs can offer both. The financial advisors at McGregor Wealth Management can review your current portfolio and help you integrate an IRA into your retirement strategy to boost your retirement income while reducing your tax burden.

Talk to McGregor Wealth Management About an IRA

You can own a traditional IRA and a Roth IRA in addition to your 401(k)—and making them work together is where we come in. At McGregor Wealth Management, clients count on us for thoughtful guidance and clear-headed strategies that help them stay ahead of life’s curveballs. As your dedicated financial advisory team, we’re here to help you plan with confidence and pursue your retirement goals with clarity.

Ready to talk? Call 303.681.0113, email mark@mgswealth.com, or schedule a meeting online.

About Mark

You probably have people helping with your investments, legal matters, and taxes…but who makes sure you are getting all the benefits you’re owed? I do. My name is Mark McGregor. I scour federal, state, local, and corporate databases to find benefits you are owed but NOT receiving. That’s what I do. Yes, we do all the other things as well, such as providing investment management, tax planning, long-term care planning and other services. Those are the big things, but I also help to make sure the little unknown things are taken care of for you. It’s also making sure that the little things don’t become big problems for you down the road.

I got into this business to fill a void I noticed after the passing of one of my friends’ parents who was experiencing hardship due to poor planning. I saw the issues they had to deal with firsthand, and this left me feeling that there were lots of financial salespeople, but not many true advisors making sure people were getting all the available benefits they had worked so hard for. I use the skills I gained from my bachelor’s degree from California Polytechnic State University and 24 years of industry experience to get all the benefits my clients are owed. I live in Castle Rock, and we are actively involved in sports and charitable organizations, such as Unbound, which provides personal attention and direct benefits to children, youth, the aging, and their families so they may live with dignity and achieve their desired potential and participate fully in society.

Investment advisory services offered through Brookstone Wealth Advisors, LLC (BWA), a registered investment advisor and an affiliate of Brookstone Capital Management, LLC. BWA and McGregor Wealth Management are independent of each other. Insurance products and services are not offered through BWA but are offered and sold through individually licensed and appointed agents.

Mark McGregor and/or McGregor Wealth Management are not affiliated with or endorsed by the Social Security Administration or any other government agency.