Dogs of the Dow - Dividend stocks / High dividend yield stocksDogs of the Dow - Dividend stocks / High dividend yield stocksChart of the Day
Dogs of the Dow - Dividend stocks / High dividend yield stocks
Main Menu Dogs of the Dow main menu
Get charts, data & surveys with the popular Dogs of the Dow Newsletter

Individual Retirement Account  

Facebook Google+ WordPress LinkedIn Twitter Blogger Tumblr Email AddThis

An Individual Retirement Account (IRA) is a type of savings plan, endorsed by the federal US government that offers tax advantages for individuals who set aside money for their retirement. Contributions to an Individual Retirement can be deducted from income tax (in whole or in part) depending on the type of Individual Retirement Account and the specific circumstances. Individual Retirement Account contributions are limited based on income.

A Traditional Individual Retirement Account can be opened by any individual, up to the age of 70.5 years, who has earned income. Contributions to a ROTH Individual Retirement Account cannot be deducted but qualified distributions are tax-free, there is no limit on the age of contributor, and amounts in a ROTH IRA do not have to be withdrawn. The main criterion for choosing between a Traditional and ROTH IRA is the expected tax rate at retirement. If your tax rate is going to be lower at retirement then receiving tax credits for contributions (Traditional IRA) tends to be the better choice but it does depend on the opportunity cost of the initial tax saving. If your tax rate is going to be the same or higher at retirement then receiving tax-free distribution (ROTH IRA) is the better alternative.

Related Terms: Portfolio Diversification - Asset Allocation - Common Stocks - Stock Market



Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.

Dogs of the Dow | Dogs 2015 | 14 13 12 11 10 09 08 07 06 05 04 03 02 01 00 99 98 97 96 | Dog Years
Daily Performance - Current Doggishness | Daily Performance | YTD Performance | Stock Research
Weekly Performance - Current Doggishness | Previous Doggishness | Weekly | YTD | the Dow
Dog Steps | FAQ | FAQ 2 | Site Tips | Glossary | Top Dog Brokers | Broker Reviews
Dogs of the Dow Newsletter | Feedback | Tell a Friend | Privacy | Accolades

Stock Symbols List - # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Stock ScreensNew - Current Doggishness | 2015 Dogs of the Dow | Largest Companies by Market Cap | Highest Dividend Paying Stocks
Ex-Dividend Date Calendar | Lowest PE Ratio Stocks | Most Active Stocks Today | Biggest Stock Gainers Today | Biggest Stock Losers Today
Dow Jones Industrial Average Companies | Dow Jones Transportation Average Companies | Dow Jones Utilities Average Companies

Investor Glossary - # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis

©1995-2015 Dogs of the Dow - All rights reserved