IRA Overview

A Traditional IRA is a retirement savings vehicle that allows eligible individuals to save for retirement by contributing up a certain amount each year. Earnings on investments in a Traditional IRA grow on a tax-deferred basis. This means that the IRA owner does not pay taxes until the amount is distributed (withdrawn) from the IRA. Contributions may be deductible, depending on the IRA owner's and/or his/her spouse's active participant status.

A Roth IRA is a retirement savings vehicle that allows eligible individuals to save for retirement by contributing up a certain amount each year. Earnings on investments in a Roth IRA grow on a tax-deferred basis, but are tax-free if distributions are qualified. This is a very attractive feature, as earnings accrue on earnings, resulting in a compounding effect and larger balances.

 

IRAs are the gateway to retirement savings. Taxpayers find them attractive, because most of the rules are easy to understand, and the taxpayer has control over who manages the IRA assets, which financial institution holds the IRA , and the amount that is contributed to the IRA each year ( contributions should be within statutory limits).

The articles in this area explore the features and benefits of Traditional and Roth IRAs. Topics explored include contributions, distributions & distribution planning, deductibility, avoiding penalties and estate planning.

 

Traditional IRAs- The Gateway to A Financially Secures Retirement The Traditional IRA is the savings vehicle used by most taxpayers to start their retirement savings program.

Roth IRAs- The Way to Tax- Free Savings The Roth IRA is often referred to as the back-ended IRA.

Traditional or Roth IRA- Which is Right for You The Traditional IRA and the Roth IRA share many similarities. Choosing takes some study.

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