An Individual Retirement Account (IRA) is an account that is designed to help you save for your retirement. You can make contributions into the account to grow the balance. Depending on your income level and whether you participate in your employer’s retirement plan, all or part of your contribution may be tax-deductible.
Contributions can be made to your traditional IRA up to the year you turn age 70 ½, at which time you must begin taking required minimum distributions from the account. You can begin taking penalty-free withdrawals at age 59 ½, but they will be taxed as ordinary income. There are also other exceptions that allow for penalty-free withdrawals.
Start planning for your retirement today and open an IRA.