Not Financial Advice: Follow these steps shared by the IRS to start:
What kind of IRA best suits my needs? Traditional IRA or Roth IRA?
Traditional vs. Roth IRA comparison chart
The chart below highlights some of the similarities and differences of Traditional and Roth IRAs.
Traditional and Roth IRAs via kwout
You can set up an IRA with a:
- bank or other financial institution
- life insurance company
- mutual fund
- stockbroker
IRA stands for Individual Retirement Account, and it's basically a savings account with big tax breaks, making it an ideal way to sock away cash for your retirement. A lot of people mistakenly think an IRA itself is an investment - but it's just the basket in which you keep stocks, bonds, mutual funds and other assets.
Unlike 401(k)s, which are accounts provided by your company, the most common types of IRAs are accounts that you open on your own. Others can be opened by self-employed individuals and small business owners. There are several different types of IRAs, including traditional IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs. To learn more about the basics of an IRA visit Money.cnn.com.