Individual Retirement Account: Who Qualifies and What You Get
Learn how to use an Individual Retirement Account to build tax-advantaged savings for your retirement years.
An Individual Retirement Account is a personal savings tool designed to help you build wealth for your retirement through various tax advantages.
Who it's for
This is available to anyone who has earned income.
What you get
You receive a way to save money for your future with specific tax advantages. There are different types of accounts available, such as the Roth IRA and the Traditional IRA, which offer different ways to handle your taxes.
What it costs you
While there is no direct fee to join, you must open an account through a private brokerage. You are also subject to annual limits on how much money you can contribute each year.
The catch to know
If you are already covered by a retirement plan through your workplace, there may be income limits that affect whether your contributions are tax-deductible.
How to apply
- Choose between a Roth IRA or a Traditional IRA based on your tax needs.
- Select a private brokerage to open your account.
- Set up your contributions and manage your savings through that provider.