Educate Your Clients On IRAs

IRAs can be a powerful savings tool to help your clients reach their retirement goals. When meeting with clients, it is important to lay out the different types of IRAs offered and the benefits of having an IRA can bring. Here is some basic information that you can use to educate your clients on IRAs.

What are IRAs?

An IRA, or an individual retirement account, is a common retirement savings tool in the United States. IRAs are offered by most financial institutions, and many employers have systems in place where employees can easily contribute to their IRA savings each month.

Typically, people are only aware of Traditional IRAs and Roth IRAs, though there are many additional types. Some of the most common IRAs include Rollover IRAs, Inherited IRAs, and Custodial IRAs, and SEP IRAs.

Traditional IRA

  • Contributions to a Traditional IRA may be tax-deductible.
  • Traditional IRAs have no income limitations.
  • Any withdrawals of pre-tax earnings or contributions are taxed like income during retirement.

Roth IRA

  • Contributions to a Roth IRA are not tax-deductible.
  • Roth IRAs do have some income limitations.
  • Most withdrawals are both tax and penalty-free if you are over age 59 and 6 months, and if the account is over 5 years old.

Rollover IRA

  • Rollover IRAs provide an alternative to a 401(k) that may provide more choices and require lower fees.
  • Funds grow with a tax-advantage, even after transfer.
  • Rollover IRAs require no taxes or penalties when you transfer the account.

Inherited IRA

  • Inherited IRAs are only for individuals who inherited a Traditional or Roth IRA.
  • Inherited IRAs are not eligible for tax-deductible contributions or IRA conversions.
  • Account liquidation or annual distributions of the account balance is required within a pre-set period of time.

Custodial IRA

  • Custodial IRAs can be a Traditional or Roth IRA, held by a parent for children under age 18 who earn income.
  • Custodial IRAs may be used to pay for higher education expenses.


  • SEP IRAs are best for small business owners or those who are self-employed with few or no employees.
  • SEP IRAs are entirely funded by the business owner, but policies are owned by the employees.
  • Withdrawals from SEP IRAs are taxed as normal income.

What are the benefits of IRAs?

IRAs provide several major benefits. Not only can these accounts help you reach your retirement savings goals, but they can also provide tax and income benefits. Interest on an IRA compounds year after year, which increases the amount of overall retirement savings drastically over a long period. Some IRAs also allow clients the choice to defer taxes on the money they are contributing or to have tax-free withdrawals later, so long as certain conditions are met.

Tax-deductible IRA contributions can also lower one’s adjusted gross income (AGI), which may affect your tax rate or how certain itemized tax deductions are calculated. If you already have more than one retirement account, you may be able to consolidate qualifying accounts into a new IRS to protect your retirement funds while still contributing to your future.

For more information and educational resources, check out National Life Group’s IRA consumer marketing materials!


We hope this information helps to educate your clients on IRAs.

Empower Brokerage is dedicated to helping you educate your clients on the insurance they need and staying on top of their health. Whether it’s through webinar training, one-on-one calls, seminars, or marketing plans. We want you to be successful. Give us a call if you have any questions at 888-539-1633.

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