By: Marnique Sparago, Guest Contributor
Investing for retirement is one of the most important things you can do for your future. Yet an employer-sponsored savings plan, such as a 401(k), may not be enough to provide the savings you need since there are many risks to be prepared for. For many, an Individual Retirement Account is one of the best ways to accumulate additional retirement savings on a tax-advantaged basis.
There are two main types of IRAs, Traditional and Roth. Both have the same contribution limits, the same catch-up provisions for people age 50 and older (for this year’s amount, go to the Internal Revenue Service website, www.irs.gov), and both allow your investment earnings to compound tax-deferred until you start taking withdrawals, typically at retirement.
To help determine which IRA is right for you, consider how they differ.Continue reading
