What is an IRA?

08/29/2011 0 comments

IRA stands for Individual Retirement Account. It is a savings account with tax deferred. In an IRA account, you can invest in stocks, bonds, mutual funds, ETFs and other investment products (such as options).

You usually open an IRA account in a brokerage. Others can be opened by self-employed individuals and small business owners. Types of IRAs include traditional IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs.

There are restrictions on how much you can invest in an IRA and how much and when you can withdraw from an IRA account without incurring IRS penalty.

 



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