Your Guide to Individual Retirement Accounts

Every working American can invest in an Individual Retirement Account to build a tax-deferred nest egg for the future. Use this IRA Center to help map out your investment strategy for retirement.

Why should I have an IRA?
If you are employed, you should take advantage of every option available to you to save for your retirement. One of the best ways is by participating in a retirement plan where you work, such as a 401(k). But if you don't have such a plan...or even if you do and would like to invest more for retirement...you can contribute to an Individual Retirement Account or IRA. 

For 2006 and 2007 you can invest up to $4,000 in an IRA. If you're over the age of 50, there's a "catch-up provision" that allows you to invest an additional $1,000 more than younger workers.  A non-working spouse can also contribute to an IRA at the same level.

Your IRA money is invested as you decide, in the type of IRA you choose, to provide long-term, tax-deferred growth. The type of IRA you select (Traditional or Roth IRA) will determine whether your IRA investments are tax-deductible at investment or tax-free at withdrawal. You'll want to examine the many IRA choices available to you and select the one that is best suited to your needs.