How Do You Set Up An IRA?
The Employee Retirement Income Security Act in 1974 was the birth of the Individual Retirement Account. There are two main types of IRA accounts: Roth and Traditional. Roth IRA contributions are made with after-tax dollars and your distributions are tax-free if you stay within IRS rules. Traditional IRA contributions are pre-tax (tax-deductible at the time of contribution) and distributions are taxable as ordinary earned income. IRA accounts allow individuals to take retirement savings into their own hands. Contact a brokerage house to set up an account. Fidelity Investments, T. Rowe Price, Vanguard, Schwab, Ameritrade, and many other discount brokers can do this for you. Make sure to find a broker that will not charge you fees for owning an IRA. You will still have to pay fees for trade commissions, but you should not pay annual fees for your account. These do not add any value. It is important to remember that an IRA is individual. It is not tied to your employer. You make your own c
