An IRA or individual retirement account is a type of savings account specifically for retirement that offers certain tax benefits.
There are two common types for individuals: Traditional and Roth IRAs.
With either one you can save or contribute up to $7,000 a year depending on your age and income.
Traditional IRAs may let you deduct your contributions on your taxes, but because you're able to deduct that money now you'll have to pay income tax when you withdraw during retirement.
And you can't withdraw before you're fifty nine and a half without an additional tax.
Roth IRA contributions however aren't tax-deductible so while you won't save on your taxes now you can withdraw your Roth funds without paying income tax in the future And as long as you meet the requirements, you can withdraw your contributions without penalty.
Each type of IRA has its own specific rules to consider.
In addition to these your bank or broker can help find the right account for you.
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