INDIVIDUAL RETIREMENT ACCOUNTS

Individuals can set up their own accounts for retirement through individual retirement accounts (IRAs). They can set them up in a variety of investments, and the income the accounts earn is not taxable while it is in the accounts. The money contributed to an IRA may also be tax-deductible, depending on factors to be discussed on the following pages. Contributions that are deductible will, however, be taxed when money is withdrawn from the account.

IRAs have become very popular as a way to save for retirement. This tutorial will take you through the most important things to know about IRAs. It will cover the following:

How You Can Fund Your IRA How to Contribute to an IRA How and When Contributions Can Be Deducted From Taxable Income Limits on Deducting Contributions If You Are Single or Married and Filing Separately Limits on Deducting Contributions If You Are Married and Filing Jointly How IRAs Are Taxed Taxing of Deductible and Non-Deductible Contributions Taxes on Excess Contributions Rollovers Premature Withdrawals and Insufficient Distributions The IRA is a Self-Directed Retirement Plan

Only traditional IRAs will be discussed here. We will cover Roth and other IRAs in other tutorials.