What is a ira account?
An “Individual Retirement Account” (or IRA) is a retirement plan account that provides some tax advantages for retirement savings. There are a number of different types of IRAs, which may be either employer-provided or self-provided plans. The most common types are: Roth IRA – contributions are made with after-tax assets, all transactions within the IRA have no tax impact, and withdrawals are usually tax-free. Named for Senator William Roth. Traditional IRA – contributions are often tax-deductible (often simplified as “money is deposited before tax” or “contributions are made with pre-tax assets”), all transactions and earnings within the IRA have no tax impact, and withdrawals at retirement are taxed as income (except for those portions of the withdrawal corresponding to contributions that were not deducted). IRAs benefit you by saving for your retirement while giving you some tax savings. The amount to open an IRA varies depending on the company you deal with.
