IRA - Individual Retirement Arrangement - advantages
One retirement plan account that provides some tax advantages for retirement savings in the United States is Individual Retirement Arrangement or IRA.
There more different types of IRAs:
- Roth Individual Retirement Arrangement - all transactions within the IRA have no tax impact,contributions are made with after-tax assets, and withdrawals are usually tax-free.
- Traditional Individual Retirement Arrangement - all transactions and earnings within the Individual Retirement Arrangementhave no tax impact
- SEP Individual Retirement Arrangement - a provision that allows to a small business or self-employed individual to make retirement plan contributions into a Traditional IRA established in the employee's name.
- SIMPLE Individual Retirement Arrangement - a simplified employee pension plan that allows both employee and employer contributions.
- Self-Directed Individual Retirement Arrangement - a self-directed Individual Retirement Arrangement that permits the account holder to make investments on behalf of the retirement plan.
