To keep retirement goals on track, consider opening an Individual Retirement Account (IRA).

Before you do, keep these five things in mind:

1. The Differences Between Traditional and Roth IRAs

With a traditional IRA, your pre-tax contributions may be deductible for the contribution year. When you withdraw funds in retirement, they’ll be taxed as income. If you’re eligible, you can fund a Roth IRA with after-tax contributions, but you can withdraw tax-free funds starting at age 59½.

2. Your Income and Other Retirement Plans Affect Tax Deductions on Traditional IRA Contributions

If you meet the income qualifications and are not covered by an employer-sponsored retirement plan, you may be eligible for tax deductions on your IRA contribution

3. Roth IRAs have Income-Based Contribution Restrictions

• For 2016, single taxpayers who earn less than $117,000 and jointly filing married couples who earn less than $184,000 can contribute up to the total IRA limit.
• The Roth IRA limit for single filers who earn $117,000 to $131,999 and jointly filing married couples earning $184,000 to $193,999 will be reduced from the total IRA limit.
• Single taxpayers earning $132,000 or more and taxpayers filing jointly who earned $194,000 or more can’t contribute to a Roth IRA at all.

4. There is a Limit to Your Annual Contributions

For the 2016 tax year, if you’re younger than 50, you can open an IRA and contribute up to $5,500 annually. If you’re 50 or older, you can contribute up to $6,500 annually. You can even contribute until tax day for last-minute tax savings.

5. Your Income Tax Bracket May Help Determine Which Type of IRA You Choose

If your salary puts you in a high income tax bracket, you might consider contributing to a traditional IRA to defer tax payments until your retirement when you could be in a lower bracket, says Andrew George, a Financial Consultant with Regions Investment Solutions. If you’re in a low income tax bracket, you might want to contribute to a Roth IRA to pay a lower tax rate now, so you can benefit from tax-free withdrawals in retirement after you’ve built a comfortable nest egg.

If you’re ready to open an IRA, learn more about Regions’ IRA solutions.