Market Term of the Day: IRA: Individual retirement account. This is a HUGE topic. Please DYOR and be diligent. These are sometimes called SDIRA or Self-Directed Individual Retirement Accounts. You want to seriously think about how or why you would want to carry this “burden”. Why would you DIY when your company can do it for you? It’s your choice, however being a self-employed business owner, this may be your only choice as a retirement tool….(read more)

LEARN MORE ABOUT: IRA Accounts

TRANSFER IRA TO GOLD: Gold IRA Account

TRANSFER IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

Individual retirement account (IRA) is a type of savings account that allows individuals to save for their retirement. This account is solely focused on retirement, hence it comes with certain tax advantages.

There are two main types of IRA – the Traditional IRA and the Roth IRA. The Traditional IRA allows individuals to make tax-deductible contributions, which means that the money is taxed only when it is withdrawn after retirement. On the other hand, the Roth IRA does not offer immediate tax breaks, but the withdrawals are tax-free.

Even though IRAs are designed for retirement, they do have other advantages. For one, they are portable, meaning that it is easy to transfer the account from one financial institution to another. Furthermore, there are no required minimum distributions before the age of 70 ½, giving individuals more flexibility to manage their finances.

There are certain eligibility requirements for opening an IRA account. Individuals must have earned income, and the contribution limit varies based on age and income. For 2021, individuals under the age of 50 are allowed to contribute up to $6,000 per year to their IRA account, while those over 50 can contribute up to $7,000 per year. These contributions can only be made in cash or cash equivalents, such as money market funds.

In conclusion, IRA is a valuable savings instrument that helps individuals save for their retirement, while also providing tax benefits. With its flexibility and portability, it can be an essential tool for managing one’s finances. It is important to consult with a financial advisor before opening an IRA account to understand the best options available to achieve individual retirement goals.