IRA's and Roth IRA's

An Individual Retirement Account (IRA) is a personal retirement savings plan that allows contributions to an investment account on a pre-tax basis. There is no minimum or required IRA contribution, and all earnings on the amounts in an IRA are untaxed until withdrawn.

A Roth IRA is one in which contributions to the account are not deductible, but qualified withdrawals of contributions and earnings from the account are not taxable. Annual contributions to IRA’s are subject to contribution limits which must be coordinated between IRA types and qualified plans. Since IRA’s are intended as retirement savings vehicles, withdrawals made prior to age 59½ may be subject to penalties.

Additionally, distribution of IRA accumulations must generally begin no later than age 70½.