What is an IRA?
- IRA stands for: Individual Retirement Account.
- Basically an IRA is a savings account providing big tax breaks and making it an excellent savings vehicle for your retirement cash.
- Introduced in 1974 under the Employment Retirement Security Act and for a time was restricted to workers who did not have coverage with a qualified employment based retirement plan. This changed in 1981 with the Economic Recovery Tax Act, allowing all taxpayers under the age of 70½ to contribute to the IRA.
- There are several different types of IRAs: Traditional IRAs, Roth IRAs, SEP IRAs, and Simple IRAs.
What is a Roth IRA? (more…)