Saving for the Future with an IRA
After you retire, your personal savings should be your primary source of support. One great way to boost them is with an IRA. IRAs were created by Congress in 1974 as a tax deferred way for Americans—particularly Americans without company-sponsored pension plans—to supplement their social security benefits. With fewer employers offering pensions, IRAs may play an even larger role in the future.
There are two principal types of IRAs: traditional IRAs and Roth IRAs. Annual contributions to traditional IRAs may be partially or fully tax-deductible in the year in which they are made; distributions from a traditional IRA are generally taxable upon withdrawal. While Roth IRA contributions are not deductible during the year in which they are made, distributions can generally be taken tax-free. (For specific tax advice, please consult a professional tax advisor.)