1 year, 6 months ago
via investment-faq.com
Why should I invest in an IRA?
What are the pros and cons of investing in an IRA? How does an IRA help me plan for retirement? What types of IRA's are available?
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M$1 Answer
Hello @dnukem!
These are the advantages of IRA's
* One of the main benefits when investing IRA's is that there is no tax which keeps your investment working harder and allows your money to compound
* You have the ability to deduct contributions from your taxable income and lets you pay taxes on less money in the current year
Disadvantage of IRA:
* if you take your assets out of an IRA before your retirement age you may have to pay 10% penalty on the amount you withdraw and you also have to pay income tax on that amount as well.
* since there are no limits on how much you can contribute to an IRA it can get awfully expensive for the IRS if you put all your money away and didn't' pay taxes on it. You will be limited to contributing a certain portion of your earned income and not a penny more.
IRA or individual retirement account is a tax-deferred retirement savings plan that will let you take advantage of compounding interest that grows over time until the person is able making withdrawals if you reach the age of 59 1/2.
These are the different types of IRA's available:
*IRA or traditional IRA - taxpayers can enjoy a reduction in taxable income since contributions are tax-deductible
*Roth IRA
*SIMPLE IRA
*SEP IRA
*self-directed IRA
*Coverdell Education Savings Account
***visit the sources for more information about IRA
sources:
http://www.ehow.com/about_4572039_advantages-disadvantages-iras.html
http://www.suite101.com/content/the-benefits-of-an-ira-retirement-plan-a101608
These are the advantages of IRA's
* One of the main benefits when investing IRA's is that there is no tax which keeps your investment working harder and allows your money to compound
* You have the ability to deduct contributions from your taxable income and lets you pay taxes on less money in the current year
Disadvantage of IRA:
* if you take your assets out of an IRA before your retirement age you may have to pay 10% penalty on the amount you withdraw and you also have to pay income tax on that amount as well.
* since there are no limits on how much you can contribute to an IRA it can get awfully expensive for the IRS if you put all your money away and didn't' pay taxes on it. You will be limited to contributing a certain portion of your earned income and not a penny more.
IRA or individual retirement account is a tax-deferred retirement savings plan that will let you take advantage of compounding interest that grows over time until the person is able making withdrawals if you reach the age of 59 1/2.
These are the different types of IRA's available:
*IRA or traditional IRA - taxpayers can enjoy a reduction in taxable income since contributions are tax-deductible
*Roth IRA
*SIMPLE IRA
*SEP IRA
*self-directed IRA
*Coverdell Education Savings Account
***visit the sources for more information about IRA
sources:
http://www.ehow.com/about_4572039_advantages-disadvantages-iras.html
http://www.suite101.com/content/the-benefits-of-an-ira-retirement-plan-a101608
images:
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
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