Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What are the benefits of an IRA?

April 26, 2017Benefits IRA

0

Posted

What are the benefits of an IRA?

1 Answer

0

Posted

Many people are able to deduct the full amount of any contribution made to a traditional IRA. Plus, even if a contribution to a traditional IRA is not tax-deductible, it earns tax-deferred interest. Contributions to a Roth IRA or a Coverdell Education Savings Account are not deductible, but all of your earnings are tax-free when withdrawals are made in accordance with legal guidelines. Consult your tax adviser regarding deductibility of contributions and tax deferral of interest.