How Do You Set Up An Individual Retirement Account?
An Individual Retirement Account, known as an IRA, is a personal savings account. It is for anyone who is earning money and reporting what he or she has earned. IRAs earn compound interest and savings on taxes until withdrawn. It doesn’t take very long to open an account, so you’ll want to set up an IRA to accrue money you can live off when you retire. Choose the type of retirement account for you. You may elect a traditional IRA or a Roth IRA. A traditional IRA defers taxes until retirement. A Roth IRA offers a tax-free retirement income, since you pay taxes on it when you contribute. Other options include a SIMPLE IRA, Trust Account or group IRA, Individual Retirement Annuity, Rollover IRA, Inherited IRA and an Education IRA. Find out and understand the rules of an IRA. Know the rules of contributions, distributions and the exceptions. You can start receiving distributions at age 59½ and you must start taking your distributions by April 1 after your reach 70½. You cannot make any con
