What is an IRA?

Answer:
An Individual Retirement Account, or IRA, is

a financial instrument people use to save their money for their retirement in a tax-saving way. There are different types of IRAs, including Roth IRAs, SEP IRAs, traditional IRAs, and Self-Directed IRAs. Contributions to IRAs are usually tax deductible, and in a traditional IRA, IRA funds used by retired persons is taxed like income.

IRAs differ from 401(k) plans in that 401(k)s are usually an employee benefit to which both employee and employer contribute funds. The exception is a “simple IRA” where employee and employer contribute funds. Retirement tools vary in ways they are taxed. It is highly recommend that one consult with a qualified financial professional on the complexities of retirement saving tools.


	more Q&A sessions like this
	What is a Traditional IRA? What Is A 401(K)? What is a Roth IRA? What is an IRA? What is a SIMPLE IRA? What are Qualified Annuities? What are Retirement Annuities? What is a Rollover? What is a Qualified Retirement Plan? What is a Profit Sharing Plan?