Why is an IRA a good deal?
- What is an IRA?
- What's the difference between Roth and traditional IRAs?
- Why is an IRA a good deal?
- Who can put money into an IRA?
- How much should I put into an IRA?
- When can I access money in my IRA?
- When are IRA withdrawals penalty-free?
- When do I have to start taking the money out of an IRA?
- What if I need the money in my IRA before retirement?
- How should I invest the money?
- How do my IRA withdrawals get taxed in retirement?
- Where should I open an IRA?
- Should I take money from my IRA to pay off debt
Because money in the plan grows free from the clutches of Uncle Sam. That is, the income from interest, dividends and capital gains can compound each year without taxes nipping away at it.
In addition, you also can escape taxes on either the money you put into the plan initially or on the money you withdraw in retirement, depending upon whether you choose a traditional or Roth IRA.
So what's the catch? The government limits the amount of money you can put into an IRA each year. Most people under 50 can contribute no more than $5,000 a year; that limit rises if you're older. For more details, see How much should I put into an IRA?.
