IRAs

IRA stands for Individual Retirement Account. In this guide, we will cover all the aspects of IRA Accounts. From Traditional IRA’s to a Roth IRA or self directed IRA, we will cover it all.

IRAs are used by millions of Americans to grow their retirement savings. The government wants you to save for retirement. So does Wall Street. The more investments you have at retirement, the less likely your dependence will be on Social Security. With that in mind, Uncle Sam gives significant tax benefits to IRA accounts.

2008 Contribution Limits

For the 2008 tax year the limit for IRA contributions is: $5,000 (if you are over 50, $6,000)

Roth IRA vs. Traditional IRA

Roth IRA

Roth IRAs are similar to Traditional IRAs, but contributions to a Roth IRA are not deductible. In other words, when you fund a Roth IRA you cannot deduct that contribution for the year you fund the account.

Traditional IRA

The Traditional IRA is the best option for those who believe their tax bracket will be lower later in their life. Contributions to a traditional IRA are deductible in the year that you fund the account.

More IRA Resources

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