Individual Retirement Account (IRA)

A tax-deferred retirement savings account for individual investors. In most cases, contributions to an IRA are tax deductible in the year in which they are made. Taxes are deferred until withdrawals begin at age 59 1/2 or later. If withdrawals are made earlier, there is a 10% penalty. Contributions are limited to $5,000 a year per person, or $6,000 for those age 50 and over. You can contribute to an IRA if you also contribute to an employer-sponsored 401(k), but you won’t be eligible for a tax deduction in that year if your income exceeds certain levels.

Most Recent

A Guide to IRA Contribution Limits

Savers under 50 will be allowed to invest no more than $5,500 in their traditional or Roth IRA. Those who are 50 and older can contribute up to $6,500. But some income limits for contributions did increase for the upcoming year.

Best Ways to Spend $1,000

Here's how to reap lots of lasting benefits, and a fair amount of immediate satisfaction, from that money. Check out all of the ideas, and pick the best one for you.

7 Steps To A Successful Roth 401(k)

Here's how to make all of the right decisions so that you'll save more, invest wisely and take full advantage of all the tax breaks to build your retirement nest egg.

5 Steps To A Successful IRA

The government created individual retirement accounts, or IRAs, to encourage people to save more for their retirement. IRA also provide tax benef…

When To Start Collecting Social Security

Is it smart to sign up for a check as soon as you turn 62, the youngest possible age? Or should you wait a few years, when you'll qualify for a bigger monthly payment? Here's how to decide what's right for you.

5 Reasons to Open a Roth IRA Now

This individual retirement account provides tax-free income after you’ve retired and a lot of flexibility to make penalty-free withdrawals between now and then.

Does Unemployment Count as 401k Hardship Withdrawal?

Probably not. The IRS takes a fairly unforgiving stance on withdrawals from a traditional IRA for people under age 59 1/2.