Individual Retirement Accounts

An IRA, also known as an individual retirement account, allows people to save money for retirement in either a tax-deferred, or tax-free, account. IRA’s are usually set up at a bank or stock brokerage, e.g., Merrill Lynch, Edward Jones, etc.. The brokerage allows someone, like you, to save for retirement in either a Roth IRA (earnings from growth are tax-free) or a Traditional IRA (pre-tax deposits and earnings from growth are tax-deferred). IRA types include: Traditional, Roth, SEP and SIMPLE IRA’s. Employers also have the option to provide other plans for their employees such as, 401(k), 403(b), and 457 plans.