7 IRA mistakes to avoid

Know the rules to build retirement wealth

IRAs are supposed to be easy. And generally speaking, they are.

The government created Individual Retirement Accounts, or IRAs, to encourage people to save more for their retirement and provided tax benefits to make them more attractive.

It also made them fairly simple to open. You can usually download the forms from a financial institution, set up an automatic transfer from your bank and be up and running in a few minutes. In addition, everyone from big mutual fund companies like Vanguard or Fidelity to your local bank will offer you investment options for your IRA.

But with all this convenience, avoiding a few key mistakes is still critical to making sure your IRA is building the wealth you’ll need for retirement. Knowing the rules and the way IRAs can affect your taxes and other government benefits are all essential. Here are 7 common errors financial professionals frequently see — and how to avoid them.

By Reed Karaim
Interest.com Contributing Editor