ALL >> Business >> View Article
Retirement Planning Advice On Individual Retirement Arrangement (ira) –part Ii

In this article, we continue from the Part –I to focus on more types of IRA plans.
Most of us have different expectations from our retirement years but there is one expectation that is common-financial independence. Therefore, it comes as no surprise when every individual invests in a retirement fund conducive to his/her expectations. Many seek comprehensive retirement planning advice from experts before they consider saving. In the United States, many people have Individual retirement arrangement (IRA) that has tax benefits for its holders. The money invested in this plan helps in the reduction of the total tax liability of an individual. IRA was formed by the government in 1974 for safeguard Americans against the disasters of poor pension plans .IRA is of five types namely Roth IRA, Traditional IRA, SEP IRA, SIMPLE IRA and self directed IRA. The section provides retirement planning advice that helps us to understand the different types of IRA.
Types of Individual Retirement Arrangement (IRA) accounts
Roth IRA - In this type of Individual ...
... retirement arrangement, the savings are generally not taxed, if certain conditions are fulfilled. The various types of Individual retirement accounts differ in their tax deductions and the contributions that can be made to them. The Roth IRA is different from the others as the individual benefits by getting a tax relief at the time of the retirement. In comparison, other types of IRA’s provide tax relief when an individual is saving for the retirement. Withdrawals can also be made anytime from the Roth IRA account without having to pay any penalty even before one reaches the age for withdrawals of fifty-nine and half years. In other types of IRA, withdrawal before the legal age results in penalties. In this type of IRA, the maximum contribution is of $5000 in a given year. The other factors that influence contributions are whether a person is filing singly or as married and the limits of his/her gross income. In spite of qualifying fo9r a 401K plan, an individual can still quality for the Roth IRA plan.
SEP IRA – In addition to the traditional and Roth IRA’s, there is another type of IRA that allows a small business of a self employed individual to make contributions towards a retirement fund. Contributions made are in the name of the employee and not in the pension fund of the company.
Retirement planning advice is helpful for those looking to enjoy the golden years of life. Visit www.entrustedin.comfor details.
Add Comment
Business Articles
1. Lucintel Forecasts The Global Wall-mounted Ac Ev Charger Market To Grow With A Cagr Of 22.4% From 2025 To 2031Author: Lucintel LLC
2. Technology Landscape, Trends And Opportunities In Global 3d Printing Photopolymer Market
Author: Lucintel LLC
3. Lucintel Forecasts The Global Smart Home Market To Reach $372 Billion By 2030
Author: Lucintel LLC
4. Second Marriage Matrimonial – Verified Matches & Free Registration
Author: Truelymarry
5. Core: Leading The Way In Managed It Services For Businesses Across London
Author: IT Management
6. The Role And Function Of A Collection Agency
Author: Bennett Carter
7. Understanding Debt Collection Agencies: What They Do And How They Affect Consumers
Author: Bennett Carter
8. How To Use An Smm Panel Effectively For Fast Social Media Growth
Author: Smm Panel
9. Essential Tips For Beginners And The Power Of Professional Editing
Author: Sam
10. How To Improve Field Staff Efficiency With Geolocation Tools
Author: TrackHr App
11. Building An Effective Energy Management System
Author: Jane
12. Internal Auditor Training: The Key To Effective Risk Management And Compliance
Author: Sqccertification
13. Why Accurate Accounting In Property Management Is The Key To Higher Roi
Author: Harsh Vardhan
14. Kaal Sarp Puja In Trimbakeshwar – Benefits, Process & Trusted Pandit Contact
Author: Pandit Milind Guruji
15. Data Entry Vs. Data Processing: What’s The Difference And Why It Matters
Author: Allianze BPO