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Learn more about our focus on education, assistance and access to financing for minority and women business owners.

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Influencer Marketing in Social Media.

Aliza Sherman is a new media entrepreneur, author, women's issues activist, and international speaker.

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Can $5500 IRA Contributions Really Add Up?

Can $5500 IRA Contributions Really Add Up?

A wise person once said that humans tend to over-estimate what they can accomplish in the short-term and under-estimate what they can accomplish in the long-term. This holds very true for IRA contributions.

IRAs offer a number of benefits:

  • Regular savings
  • Potential tax-deductible contributions (depending on income levels and other retirement plan participation)
  • Tax-deferred compounding
  • Potential tax-free distributions (in the case of Roth IRAs)

It can be easy to put off or fail to make contributions to an IRA. Retirement may seem like a long way off and $5500 may not sound like a lot of money to save. But look at how these contributions can accumulate.


Total Contributions

IRA Value at 6% earnings

IRA value at 8% earnings



















Taxes Due at 28%
- $75,550

- $128,256

Net After Tax asssumes non-deductible contributions were made

No one can accurately predict what level of earnings you may earn on your investments. It may be difficult to foresee what the future tax laws will be. However, using IRAs as part of your retirement planning strategy can help you have the type of financially secure retirement you desire.