Welcome to Individual Retirement Accounts
This is a resource website on Individual retirement accounts or IRAs, the best tax advantaged
vehicle to save for retirement. While most people already invest in a 401k plan, a 401k
plan has many restrictions that an IRA can fill in the void. While the maximum 401k contribution amount is much higher than a maximum IRA
contribution amount, IRA does have its advantages.
Individual Retirement vs 401k plans
There are many types of retirement accounts such as a pension, a 401k, 403b, and profit sharing.
An individual retirement account is one of many. There are also many types of individual retirement accounts to
choose from such as a traditional IRA, a Roth individual IRA and a SEP IRA. The 401k contribution limit is higher than IRA contribution limits. Both the
401k limit and the IRA limits are set by the IRS but the 401k can have other
limits specific to the plan itself.
Most people are also afraid of not being able to withdraw from retirement accounts. Both
401k withdrawals and IRA withdrawals are often subject to the same tax
treatment. A 401k early withdrawal is subject to a 10% penalty as an
IRA early withdrawal would with exceptions. When contributing to an IRA, pay attention to the maximum IRA contribution limit.
Preparing for retirement
Thinking and planning your retirement at a young age is the single best thing you can do for
yourself besides getting life insurance as this plan will show you the silver lining in every cloud. With good
retirement planning, it does not have to be an emergency for you to have a great, even early retirement and
enjoy the fruits of your decades of labor.
All investment retirement accounts have one thing in common, they need good planning and
management. Otherwise, you could find yourself outliving the funds in your retirement accounts. Outliving your
retirement income is the number one fear among retirees. You can use the link below to bookmark this site.
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