No. of Recommendations: 0
"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.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.