The account you open today does the heaviest lifting
A dollar contributed at 30 has thirty-five years to compound. The same dollar at 55 has ten. Choosing the right account is the second decision - starting is the first.
2025 contribution limits
Limits change from year to year. Verify current figures with a tax professional.
Roth IRA
You contribute money you have already paid tax on. It grows untaxed, and qualified withdrawals in retirement are entirely tax-free - including every dollar of growth.
Who it suits
Anyone who expects to be in the same or a higher tax bracket in retirement. That describes most people early in a career, and many people who expect tax rates generally to rise.
The rules that matter
- Contribute up to $7,000 a year ($8,000 from age 50)
- Withdraw your contributions at any time, for any reason, with no tax or penalty
- Withdraw earnings tax-free after 59½ and five years in the account
- No required minimum distributions during your lifetime
- Income limits apply to direct contributions
What $7,000 a year becomes
Maximum IRA contribution, 7% average annual return, no withdrawals.
Hypothetical. Returns are not guaranteed and you could lose money.
Roth or traditional?
| Roth | Traditional | |
|---|---|---|
| Tax break | In retirement | This year |
| Growth | Tax-free | Tax-deferred |
| Withdrawals | Tax-free | Taxed as income |
| RMDs at 73 | No | Yes |
| Income limits | Yes | No |
| Best when | Rate rises later | Rate falls later |
Most households benefit from holding some of each - it hedges the tax rate you cannot forecast.
Traditional IRA
Contributions may be deductible on this year's return, and nothing is taxed until you take the money out. The bet is that your rate in retirement will be lower than it is now.
Who it suits
Peak earners in the 32% or 35% bracket, people without a workplace plan, and anyone who needs the deduction to keep contributing at all.
The rules that matter
- Same $7,000 annual limit as the Roth - the two share one cap
- Deductibility phases out if you or a spouse have a workplace plan
- Withdrawals before 59½ generally add a 10% penalty
- Required minimum distributions start at 73
That old 401(k) is still yours
The average worker changes jobs a dozen times. Every plan left behind is another statement, another fee schedule and another investment menu you no longer follow.
Open a Rollover IRA
Takes about ten minutes. No minimum, no fee to open.
Request a direct rollover
We provide the pre-filled forms and contact your old plan administrator.
Assets arrive
Typically five to fifteen business days, with nothing withheld for taxes.
Choose investments
One target-date fund, a three-fund core, or a managed portfolio.
Direct rollover - recommended
The plan sends the assets straight to your MeridianClad IRA. Nothing is withheld, no 60-day clock starts, and the transfer is not a taxable event.
Indirect rollover - be careful
The plan sends a cheque to you, withholding 20%. You have 60 days to deposit the full original amount - including the withheld portion, from your own pocket - or the shortfall is taxed and may be penalised.
Bigger limits when you are the employer
Working for yourself means you can contribute as both employee and employer - often three times the IRA limit.
SEP IRA
Contribute up to 25% of compensation, to a $70,000 cap. Employer-funded, with almost no administration and no annual filing.
Best for: consultants and owner-only businesses that want simplicity.
Open a SEP IRASolo 401(k)
Defer $23,500 as the employee, then add an employer contribution on top. Roth deferrals and plan loans are available.
Best for: owners who want the maximum possible contribution.
Open a Solo 401(k)SIMPLE IRA
A lighter plan for businesses with up to 100 employees. Mandatory employer match, minimal paperwork, lower limits than a 401(k).
Best for: small teams adding their first retirement benefit.
Talk to usOne fund can hold the whole plan
Pick the target-date fund closest to the year you expect to retire. It diversifies globally and shifts toward bonds automatically as that year approaches.
| Fund | Price | Expense ratio | YTD | 5-year | Risk | |
|---|---|---|---|---|---|---|
| MRT30 MeridianClad Target Retirement 2030 Fund |
$131.80 | 0.08% | +6.4% | +7.8% | 3/5 | Details |
| MRT40 MeridianClad Target Retirement 2040 Fund |
$142.39 | 0.08% | +8.0% | +9.9% | 4/5 | Details |
| MRT50 MeridianClad Target Retirement 2050 Fund |
$163.43 | 0.08% | +9.1% | +11.4% | 4/5 | Details |
| MRT60 MeridianClad Target Retirement 2060 Fund |
$78.02 | 0.08% | +9.4% | +11.7% | 5/5 | Details |
| MRTRI MeridianClad Target Retirement Income Fund |
$61.24 | 0.08% | +4.7% | +4.9% | 2/5 | Details |
Past performance never guarantees future results. Not a recommendation to buy any security.