The Benefits of IRAs

By deferring taxes, an IRA has the potential to generate greater investment returns or greater retirement income than a similar non-retirement account.

IRAs can be funded with rollovers from other IRAs and retirement plans, direct contributions or a combination of those. Traditional and Roth IRAs are commonly established and funded to consolidate assets from previous employers’ retirement plans.

IRAs, like employer retirement plans, are intended for long-term investing. So in exchange for their favorable tax status, there are some restrictions on using funds prior to retirement. Checkout 7 benefits that you can gain from an IRA.

1. Individuals may contribute to both a Traditional and a Roth IRA in the same year