It is never a bad idea to begin planning for retirement, no matter what stage of life you are in. Today is when all those small decisions about retirement can start having a big impact on your future self.  It is important to remember that it is never too soon to plan for your golden years. Here are some options that could help you begin planning. An Individual Retirement Account (IRA) might be a good option to consider. It not only allows people flexibility over their finances, but potential tax savings as well. It will depend on which type of IRA you have access, but there is potential for multiple perks. A Roth IRA and traditional IRAs both have their pros, but there are also some key differences that should be considered when figuring out which one might work best for your situation.  Roth IRA is the option for individuals who plan on being in higher tax brackets in the future. With this account, you can make after-tax contributions. You may want to consider this option if you expect to be in a high tax bracket upon retirement. Please be aware that Earnings withdrawn prior to 59 ½  would be subject to income tax. Roth IRA owners must be 59 ½  or older and have held the IRA for five years before tax-free withdrawals are permitted.  The other option is A Traditional IR. This IRA may allow you to make pre-tax contributions.  If you are expected to be in the same or lower tax bracket when it is time to retire, then you should consider this option.  This is best suited towards those people whose income is expected to stay stable over time – such as retirees on fixed incomes. This can also include part-timer workers not making enough money at work currently,  but plan on doing so later down the line. This is not a way to create an income, but a way to maximize the money you are currently earning.   The key difference between a Roth IRA  and Traditional IRA is whether it makes more financial sense to potentially: Enjoy tax-free withdrawals in the future or take advantage of current benefits. Keep in mind that you have a lot of support along the way when you’re ready to apply. Our practice is here to answer whatever questions you may have. Any opinions are those of Mun Morris and not necessarily those of Raymond James. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation.  Contributions to a traditional IRA may be tax- depending on the taxpayers income, tax-filing status, and other factors. Withdrawal of pre-tax contributions and/or earnings will be subject to ordinary income tax and, if taken prior to age 59 ½, may be subject to a 10% federal tax penalty. Roth IRA owners must be 59 ½  or older and have held the IRA for five year before tax-free withdrawals are permitted.   Raymond James and it’s advisor do not offer tax or legal advice. You should discuss any tax or legal matter with the appropriate professionals.