• Individual Retirement Accounts (IRAs) are tax-advanced retirement savings accounts.
  • Types of IRAs include traditional IRAs, Roth IRAs, Simplified Employee Pension (SEP) IRAs, and Savings Incentive Plan (SIMPLE) IRAs.
  • Money held in an IRA generally cannot be withdrawn before the age of 59.5 without a significant tax penalty of 10% of the amount withdrawn.
  • There are annual income limits for deducting traditional IRAs and Roth IRAs.
  • IRAs are for long-term retirement savings accounts. If you take the money early, you will destroy this goal by reducing your pension assets.