Quick Intro: IRA Funds
Looking for a quick intro to IRA funds? This quick intro will equip even an amateur investor with the means to have an adequate and safe retirement plan. An IRA, or Individual Retirement Account, combines two extremely powerful forces: compound interest and tax savings. If it is affordable for someone, it is best to invest for the long term. There's really no reason not to open an IRA account. This will secure a better future for families and future generations.
There are two basic types of IRAs: traditional IRAs and Roth IRAs. A traditional IRA is a personal savings plan that will give you more tax advantages. This is a good choice for setting aside money for retirement. Contributions made into a traditional IRA may be fully or partially deductible. This would depend on your circumstances. Amounts in a traditional IRA are not taxed until they are distributed. A Roth IRA is an individual retirement arrangement that is subject to the rules that apply to a traditional IRA. It can be either an account or an annuity. Unlike a traditional IRA, you cannot deduct contributions on a Roth IRA.
Most people want to relax in their golden years. They do not want the stress of not knowing if they can survive on their Social Security. Not to mention that it is important for the future of their children. The more money that is saved now, the more you have at the end of your career. This will also ensure more to spread around to your heirs.
An IRA is available to anyone who receives taxable income during the year. For IRA contribution reasons, income includes all wages, salaries, tips, bonus commissions and alimony. Married couples may each have a separate IRA. Also, persons age 50 or older may make an additional catch-up contribution to an account as well. According to the IRS, individuals can contribute to a traditional IRA even if they are already covered by another retirement plan. They may not, however, be able to deduct all of their contributions if they or their spouse are covered by an employer-sponsored plan.