An IRA typically stands for Individual Retirement Account and an IRA is a type of retirement savings account that can give you a big tax break on your assets, as a result making it an excellent way to put money away for your retirement. An IRA is occasionally mistaken for an investment, but actually it is a place where you can keep your stocks, bonds, mutual funds and any other assets together. There can be a number of different IRAs, which will have their own tax implications and eligibility requirements.
An IRA can allow you to take a tax deduction from the money that you have contributed into your IRA retirement account. This type of tax deduction lets you reduce your taxable income, so you are not paying a tax on the money that you have set aside for your IRA. An IRA will allow you to grow your savings tax-deferred. Once you have decided to take the money out of your IRA, the money that you are accessing will be counted as taxable income and that income will be taxed as ordinary income. Generally, there are restrictions on who and when deductions can be taken from your IRA. If you need information about all of the options that may be available to you for an IRA account, you should consult United Retirement Advisors Group.