IRAs

What You Should Know About IRAs
An individual retirement account is an investment account that allows you to save for your retirement and take advantage of tax deferments. The IRA, created in 1974, gave individuals working for employers who did not offer a retirement plan a way to supplement their retirement income by opening their own retirement account. An IRA is an investment account that is opened in the name of an individual through a bank, an investment firm, or a mutual fund. Most IRAs consist of stocks, bonds, futures, and U. S. Treasuries. All IRA contributions must come from an individual’s earned income. IRAs are subject to strict government regulations concerning the income levels of eligible individuals, on limits that an individual may invest, laws concerning the age at which a person can withdraw money from the IRA and also the amounts that can be withdrawn based on life expectancy tables. The three IRA’s, the traditional IRA, the Rollover IRA, and the Ro...