What is an individual retirement account? Are there different types?
A. An individual retirement account (“IRA”) is a tax-deferred personal retirement account that an employed person can set up and deposit up to $5,000 per year ($10,000 for married couples filing jointly, whether or not both spouses work).Investors over 50 may make additional “catch up”contributions of $1,000 per year. Depending on your filing status and your household’s adjusted gross income, contributions generally are deductible; withdrawals prior to age 59½ are generally subject to penalty taxes as well. See “IRAs” for additional information on the different types of IRAs available.
