What You Need to Know About Making Contributions to an IRA

    by Clark M. Blackman

    Individual retirement accounts provide tax-advantaged opportunities to set aside money each year for your retirement. Understanding the basics of where each type of IRA applies and the rules relating to them is imperative to effectively using these “tools”—particularly given the changes in the rules that have occurred in recent years.

    You generally have three types of individual retirement accounts (IRAs) from which to choose:

    • Traditional deductible IRAs,
    • Traditional non-deductible IRAs, and
    • Roth IRAs.
    Each type of IRA has unique rules pertaining to account contributions and distributions. You need to understand these rules in order to determine which IRA, if any, is the best retirement vehicle for you.

    ...To continue reading this article you must be registered with AAII.

    Gain exclusive access to this article and all of the member benefits and investment education AAII offers.
    JOIN TODAY for just $29.
    Register for FREE
    to read this article and receive access to future AAII.com articles.

    Log in
    Already registered with AAII? Login to read the rest of this article.
    → Clark M. Blackman