Writing Resources
An IRA standing for individual retirement account is a savings plan which is designed to help Americans save for retirement The money which you put into the IRA the minimum being 500 and maximum being 5000 dependant on different plans grows over time on a tax deferred basis or a tax free basis depending on which type of IRA which means once you pay tax on the money in the ira once you re done forever You either pay once you contribute the money or when you withdraw the money this is dependant on the type of IRA There are two different types of IRAs there is the traditional IRA and there is the roth IRA Both are great ways to save for retirement you just have to figure out which one is best for your plan of saving A good starting point in figuring which one is better is asking yourself do you believe the tax rate will be higher later in life Then the roth IRA is for you oppositely do you believe tax rates will be lower at retirement than now Then the traditional IRA is for you The specific differences in the IRAs are as following The traditional IRA allows you to be eligible to deduct your contributions on your taxes in the same year as when you put the contributions in and withdraws from your traditional ira is grouped with your taxable income
