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Author: Howie52 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1498  
Subject: Re: Trad. IRA's Date: 2/6/2008 3:02 PM
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"What does that mean? "

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

IRAs are a tax-related kind of term -
the government lets you put aside money into an account and
take a tax deduction for it.

Then the money is invested as you direct ---- say a mutual fund or
other investment. You can buy or sell investments within that account
with no tax until you either withdraw funds or have to take a
minimum withdrawal from the account once you've reached a given
age (70 I think). The funds you withdraw are taxed as regular income.

The benefit is that your tax rate is normally less when you retire
than while you are working. Also, your returns on the investments are
accumulated tax-free and so can grow a bit faster.

There are some resources about IRAs on several sites --- including
TMF, the IRS, and most banks and companies would be happy to talk
about how to set them up and such.

Good luck.
Howie52
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